National Minimum Wage: Are you ready?
March 28, 2022 9:38 am
The National Minimum Wage (NMW) and National Living Wage (NLW) is the minimum pay per hour most workers are entitled to by law, the amount will depend on a worker’s age and if they are an apprentice.
You may have seen in the news lately that the government are introducing a new National Living Wage.
From April 2022 the new mandatory national living wage (NLW) for workers aged 23 and older is set at £9.50, this is a rise of 59p compared to the current National Minimum Wage (NMW) rate.
As the wage increases, it is important to be completely clear on what the current figures are and the forthcoming changes, and how it affects your staff.
Figures below have been taken from the government website.
| Under 18-Year-old Rate | 18 – 20-Year-old rate | 21 – 22-Year-old rate | 23 and older Year old rate | Apprentice | |
|---|---|---|---|---|---|
|
Current National Living Wage |
£4.62 |
£6.56 |
£8.36 |
£8.91 |
£4.30 |
|
As of April 2022 |
£4.81 |
£6.83 |
£9.18 |
£9.50 |
£4.81 |
As you can see From April 2022, the national living wage is set at £9.50 an hour for workers aged 23 and older.
The minimum wage will still apply for workers aged 24 and under.
Who is entitled to the National Minimum Wage?
- part-time
- casual labourers, eg someone hired for one day
- agency workers
- workers and homeworkers paid by the number of items they make
- apprentices
- trainees, workers on probation
- disabled workers
- agricultural workers
- foreign workers
- seafarers
- offshore workers
Apprentices – Apprentices are entitled to the apprentice rate if they’re either:
- under 19
- over 19 and in the first year of their apprenticeship
(Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the minimum wage rate for their age.)
Remember that it is completely down to your business what you decide to pay your staff based on their level of experience and qualifications; however you must ensure that what you decide to pay does come in line or above the bracket of minimum wage.
Use the National Minimum Wage calculator to check whether the National Minimum Wage is being paid.
