The National Minimum Wage and National Living Wage

What The National Minimum rates are and who they apply to

What is the National Minimum Wage?

The National Minimum Wage and the National Living wage are effectively the same thing. The National Minimum Wage relates to people who are under 25 and the National Living Wage relates to people who are over 25.

The National Minimum Wage is the minimum amount (per hour) you need to pay the people who work in your company.

It is set by the government and all employers, regardless of size, are legally required to provide its workers with this amount, as a minimum. If you don’t, it’s considered as a criminal offence.

In order to qualify for the National Minimum Wage, all workers must be of school leaving age or over and fall into one or more of the following categories:

  • Full-time workers
  • Part-time workers
  • Temporary workers
  • Disabled workers
  • Agricultural workers
  • Workers from overseas
  • Apprentices (who receive a different apprentice rate)
  • Causal labourers

However, National Minimum Wage is not obligatory for anyone working in a self-employed capacity, company directors, voluntary workers, members of the armed forces or those on work placements.

Revised rates for 2019/20 are as follows: 

  • For those aged 25 and over, the hourly rate is £8.21 (now known as the National Living Wage)
  • For those aged between 21 and 24, the hourly rate is £7.70
  • For those aged between 18 and 20, the hourly rate is £6.15
  • For those aged under 18, the hourly rate is £4.35
  • For apprentices aged between 16 and 18 (or those aged over nineteen, who are in their first year), the hourly rate is £3.90.

 

Previous rates in 2018/19 were as follows:

  • For those aged 25 and over, the hourly rate is £7.83 (now known as the National Living Wage)
  • For those aged between 21 and 24, the hourly rate is £7.38
  • For those aged between 18 and 20, the hourly rate is £5.90
  • For those aged under 18, the hourly rate is £4.20
  • For apprentices aged between 16 and 18 (or those aged over nineteen, who are in their first year), the hourly rate is £3.70.

The National Minimum Wage rates are updated in April each year.

 

Paycircle performs National Minimum and National Living Wage check‘s for you, helping keep you compliant with legislation.

 

Catherine Pinkney

Posted on Monday 8 Oct, 2018, 1 year ago

July 9, 2019

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