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New National Minimum and Living Wage rates come into effect

Posted: 25th April 2019   In: Business Employment

The new National Minimum and Living Wage rates came into effect on 1 April. The new rates are:

The new rates apply to the next pay reference period that begins on or after the date a rate increase begins or when an employee reaches a new age bracket.

For example, this means that an employee paid on the 20th of each month will start to receive the new rate of minimum wage from 21 April onwards.

If a worker receives above NMW there is no legal obligation on an employer to increase their pay when the NMW rate increases.

There are several people who are not entitled to the NMW or NLW. These include:

All other workers including pieceworkers, home workers, agency workers, commission workers, part-time workers and casual workers must receive at least the NMW or NLW.

The apprenticeship rate only applies to apprentices aged under 19, and those who are 19 or over who are in the first year of their apprenticeship.

Apprentices aged 19 or over in their second year of apprenticeship must receive the national minimum wage or national living wage rate to which their age entitles them.

Please contact Sorcha Monaghan if you would like more information about the issues raised in this article or any aspect of employment law.

 

Posted by: Sorcha Monaghan
Employment
Luton Office