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We are now one month on from the implementation of the new national minimum wage (NMW). So what has it meant for workers across the UK?
Workers aged 25 and over, the NMW remains at £7.20 (which is also the current National Living Wage)
Workers aged 21 to 24, the NMW is up from £6.70 to £6.95 (3.7% increase)
Workers aged 18 to 20, the NMW is up from £5.30 to £5.55 (4.7% increase)
Workers aged 16 and 17, the NMW is up from £3.87 to £4.00 (3.7% increase)
The apprenticeship rate: (under 19, or 19 and over in the first year of apprenticeship only) , the NMW is up from £3.30 to £3.40 (3% increase)
The new £6.95 NMW is the highest rate ever in real terms. Almost 270,000 of the UK’s lowest paid workers working 35 working hours a week will benefit from £450 annual pay rise. Many will see their pay packets rise by up to £900 a year. The effects on cashflow for businesses require careful management.
Workers should check their pay slips are updated to reflect new rates.
Employers are reminded to be vigilant. Those who fail to pay will be fined, as well as named and shamed! Check you know who is eligible in your organisation, take the appropriate payroll action, let your staff know about their new pay rate and check your staff under 25 are earning the right rate of NMW.