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National Living Wage & National Minimum Wage Rates for April 2017

by Super User
on 02 December, 2016
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The National Living Wage is to increase by 30p an hour to £7.50 in April next year.

The Chancellor Philip Hammond said the increase for over-25s from April was worth more than £500 to a full-time worker. This is estimated to mean a pay rise for over a million workers. In total, earnings for a full-time worker on the National Minimum Wage (NMW) will have increased by over £1,400 a year since the introduction of the NLW in April 2016.

In addition to this rise, the Government has accepted the recommendations to increase all levels of the National Minimum Wage. The new rates as of April 2017 will be:

Category Old Rate New Rate
Over 25 £7.20 £7.50
21 to 24 £6.95 £7.05
18 to 20 £5.55 £5.60
16 to 17 £4.00 £4.05
Apprentices £3.40 £3.50

 

As usual, the increase will be effective from the first full pay period starting on or after the 1st of April. This means that for most monthly paid people they will see the results in their April pay, however as an example, weekly paid staff paid a week in arrears on a Friday will only see the first increase on the 14th April as the 1st of April falls on a Saturday, and so if the pay week runs from Monday to Friday, the next Monday "on or after" the 1st is the 3rd, which would then form part of the payroll that is paid out on the 14th.

As always, if you already outsource your payroll service to APS Global, you can call us to discuss your options.