The National Living Wage (NLW) and the Minimum National Wage (MNW)

Employers need to check that they are observing the new rates effective from 1st April 2017 for the mandatory National Living Wage for workers aged 25 and above and the National Minimum Wage (NMW) rate.

This means any employee aged 25 or over, including directors, working a standard 35 hour week must be paid an annual salary of at least £13,650 for the year ending 31st March 2018 to avoid falling foul of the new mandatory minimum pay rules.

Effective from: 25 and over 21 to 24 18 to 20 Under 18 Apprentice
01-04-2017 £7.50 £7.05 £5.60 £4.05 £3.50
01-10-2016 £7.20 £6.95 £5.55 £4.00 £3.40
01-04-2016 £7.20 £6.70 £5.30 £3.87 £3.30
01-10-2015 £6.70 £6.70 £5.30 £3.87 £3.30
01-10-2014 £6.50 £6.50 £5.13 £3.79 £2.73
01-10-2013 £6.31 £6.31 £5.03 £3.72 £2.68

The apprentice rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the NMW for their age.

Call us on 01202 482121 if you are looking for some free advice on how to plan the best remuneration package for your employees. Although May 2017 seems a long way off, the new pension rules that come into affect on this date will have a significant impact on payroll running costs for most small employers. The decisions you make now, should take into account these kinds of factors.

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MAAP Accountants
Sigma House, 44 Willow Way
Christchurch, Dorset, BH23 1LA
Tel: 01202 482121