The National Minimum Wage is set to change in April 2019.
Do you know enough about the National Minimum Wage and when to implement the changes?
As an employer do you know the rules regarding minimum age? What age do you pay it at and what about apprenticeships?
What is the National Minimum Wage?
The National Minimum Wage (NMW) is a legal requirement which sets out defined amounts dependent on age, that you are required by law to pay your employees.
Almost all workers are entitled by law to be paid no less than the National Minimum Wage.
When employing staff, you will need to pay your workers at least the legal minimum.
There are different levels of National Minimum Wage and the hourly minimum wage rate depends on an employee’s age and whether they are an apprentice.
What are the rates for National Minimum Wage and National Living Wage?
Currently, the National Minimum Wage and National Living Wage for 2018 is as follows:
| Age | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| April 2018 | £7.83 | £7.38 | £5.90 | £4.20 | £3.70 |
If you are aged 25 and over, you will receive the National Living Wage which is the highest rate of the National Minimum Wage.
Every April, there is an increase in the hourly rates. From April 2019, the following rates will apply:
| Age | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| April 2019 | £8.21 | £7.70 | £6.15 | £4.35 | £3.90 |
*These are the minimum hourly rates before tax and national insurance deductions.
Apprentices
All apprentices are entitled to the apprentice hourly rate if:
- They are aged under 19
- They are aged 19 or over and in the first year of their apprenticeship
The GOV.UK website gives the following example for apprentice wages:
Example
An apprentice aged 22 in the first year of their apprenticeship is entitled to a minimum rate of £3.70.
Apprentices are entitled to the minimum wage for their age if they both:
- Are aged 19 or over
- Have completed the first year of their apprenticeship
Example:
An apprenticeship aged 22 who has completed their first year of their apprenticeship is entitled to a minimum hourly rate of *£8.21 (*from April 2019).
Who is entitled to The National Minimum Wage?
You must be at least school leaving age (the last Friday in June of the school year in which you turn 16) to get the National Minimum Wage.
Almost all workers are entitled to the National Minimum Wage, including:
- Caual Workers
- Part-time workers
- Temporary workers and agency workers
- Workers and homeworkers paid by the number of items they make
- Trainees and workers on probation
- Disabled workers
- Agricultural workers
- Foreign workers
- Seafarers
- Offshore workers
Who is not entitled to the National Minimum Wage?
The following types of workers are not entitled to the National Minimum Wage :
- Self-employed workers
- Company Directors
- Volunteers
- Workers on Government employment programmes
- Members of the Armed Forces
- Higher Education students on work placements
For a comprehensive list of who is and isn’t entitled, please visit the GOV.UK website.
