From 1st April 2018, the National Minimum Wage and National Living Wage will both increase.
The National Minimum Wage is for employees under the age of 25, and the National Living Wage is for over 25s.
The new rates are as follows:
- £7.83 per hour – 25 years old and over
- £7.38 per hour – 21-24 years old
- £5.90 per hour – 18-20 years old
- £4.20 per hour – 16-17 years old
- £3.70 for apprentices under 19, or 19 or over who are in the first year of their apprenticeship.
Penalties for failure to comply with the National Living Wage
With the introduction of the National Living Wage, the penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days.
The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.
If you have queries relating to any aspect of payroll or PAYE, please give our knowledgeable team a call on 020 8530 0720 or email firstname.lastname@example.org,uk.