Watch out for the minimum wage increase on 1 April 2018

The National Minimum Wage (NMW)/National Living Wage (NLW) is how much pay per hour a worker is entitled to. This figure is set to rise from 1 April 2018. The rate will depend on the worker’s age and whether they are an apprentice.

  • £7.83 for workers aged 25 and over (up from £7.50 per hour)
  • £7.38 for 21 to 24 year olds (up from £7.05 per hour)
  • £5.90 for 18 to 20 year olds (up from £5.60 per hour)
  • £4.20 for 16 to 17 year olds (up from £4.05 per hour)
  • £3.70 for apprentices (up from £3.50 per hour)

The maximum offset rate for accommodation charges is £7.00 a day or £49.00 a week. If an employer charges more than this, the difference is taken off your pay which counts towards the NMW or NLW.

The new pay rate will only affect the first full pay period after the 1 April 2018. For example, if your PA is paid weekly on a Monday to Sunday basis, the first full pay period after 1 April 2018 will be the week commencing the 2nd April 2018. This means that if your PA works on Sunday 1 April 2018, their pay will be based on the old rates.

Further guidance on the NMW and NLW can be found on our website.

You can also use HMRC’s online course on paying your workers the minimum wage for further information.