The National Minimum Wage (NMW) went up on 1 October 2016, so your employees might be due a pay rise. NMW rates depend on age and are listed in the table below.
If you have employees aged over 25 then they should be paid The National Living Wage which is £7.20.
If you don’t pay the National Minimum Wage you are liable to a 200% penalty of the arrears amount. HMRC has investigated more than 70,000 employers and last year it identified that workers were owed £10.3 million by employers failing to pay NMW.
Here are the new rates.
|National Minimum Wage|
|National Living Wage (25+)||£7.50|
|Adult rate (21-24)||£7.05|
|Young adult (18-20)||£5.60|
|16-17 year old||£4.05|
You can check you’re paying the right amount by using Minimum Wage Calculator
More about The Living Wage