BUDGET | Minimum Wage Changes

The Chancellor, Philip Hammond, has announced that the government has accepted the Low Pay Commission’s recommendations.

As of 1 April 2019, the National Minimum Wage and National Living Wage are set to increase.

The National Living Wage (the rate for those who are 25 or over) will rise from £7.83 to £8.21 per hour. 

The National Minimum Wage (for those aged under 25), the hourly rates will increase as follows:

  • From £7.38 to £7.70 for those between 21 to 24 year olds
  • from £5.90 to £6.15 for between 18 to 20 year olds
  • from £4.20 to £4.35 for 16 and 17 year olds
  • from 3.70 to £3.90 for apprentices.

As of April 2019, apprentices have the right to earn £3.90 per hour. They are entitled to this if they are under 19 or aged 19 or over and in the first year of their apprenticeship. Apprentices are entitled to the minimum wage for their age if they are over the age of 19 and have finished their first year of apprenticeship.

National Minimum Wage Fines

Almost 240 employers have been named and shamed by the government for underpaying the National Living and Minimum Wage.

Changes to apprenticeship levy

The Chancellor also announced that for smaller firms taking on apprentices, the government will half the amount they have to contribute from 10% to 5%. This is in addition to a series of reforms made earlier this month with the aim of providing employers with more flexibility in how the levy is spent.

To discuss this further, contact your HR specialist who can guide you.

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