NMW and NLW Increases Take Effect

New rates for the National Minimum Wage (NMW) and National Living Wage (NLW) (aged 25 and over) apply from 1 April 2018, and employers must ensure that they implement them accordingly.  The rates are as follows:
• 25 and over – £7.83 per hour;
• 21 – to 24-year-olds – £7.38 an hour;
• 18 – to 20-year-olds – £5.90 an hour;
• under 18s – £4.20 an hour; and
• Apprentice rate – £3.70 an hour.
Severe penalties may be imposed for failure to comply with NMW/NLW obligations.  Broadly, the penalty percentage which may be imposed for non-compliance is now 200%.  The maximum penalty is a hefty £20,000 per worker, although it may be reduced by 50% if the unpaid wages and the penalty are paid within 14 days.
For further information on the NMW, see the GOV.UK website at https://www.gov.uk/national-minimum-wage-rates

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