The Staff Recruitment Guide; The wage changes that could affect you!
At the beginning of April the national minimum wage increased, so if you were on minimum wage, make sure your wage has been updated. We have put together this short guide to the changes so you that you know what your entitled too.
What is the national minimum wage?
The National Minimum wage is the minimum amount that all workers are entitled to by law. Employers must pay you this amount or face legal action.
What is the national living wage?
The national living wage applies to those over aged over 25. It is a figure calculated off the basic cost of living in the UK. This was originally introduced in London and has since been rolled out across the UK.
What is the difference between NMW & NLW?
The new National Living Wage is different from the Living Wage, which is an hourly rate of pay and
updated annually. The Living Wage is set independently by the Living Wage Foundation and is
calculated according to the basic cost of living in the UK. Employers choose to pay the Living Wage
on a voluntary basis.
The NMW & NLW are reviewed annually.
The rates as off April 2017;
• £7.50 per hour – 25 yrs old and over
• £7.05 per hour – 21-24 yrs old
• £5.60 per hour – 18-20 yrs old
• £4.05 per hour – 16-17 yrs old
• £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
Non-payment of the NMW
It is against the law for employers to pay workers less than the National Minimum Wage or to falsify payment records.
If an employer doesn’t pay the correct rate, a worker should talk to their employer and try to resolve the issue informally first. If this doesn’t work a worker may make a formal grievance to their employer.
A worker can make a complaint to HMRC who will investigate the complaint. If HMRC find that an employer hasn’t paid at least the National Minimum Wage, they can send a notice of arrears plus a penalty for not paying the correct rate of pay to the worker.
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