27 Feb April 2017 – Changes to Living and Minimum Wage
National Living & Minimum Wage April 2017
National Living and the Minimum Wage are due to increase in April 2017.
Historically the Minimum Wage has been announced in April and increased in October but going forward both wage rates will be updated in April.
The new and current details are shown below:
25 & over 21 to 24 18 to 20 Under 18 Apprentice
Current rate £7.20 £6.95 £5.55 £4.00 £3.40
April 2017 £7.50 £7.05 £5.60 £4.05 £3.50
The rate of £3.40 is applicable for apprentices under the age or 19. For those apprentices who are 19 or over the apprentice rate of £3.40 may be used for the first year after which the minimum wage that is appropriate to their age group must be used.
So for example an apprentice aged 22 is entitled to £3.40 in their first year.
Apprentices are entitled to the minimum wage if they are over 19 and have completed their first year.
So if the apprentice has completed their first year of apprenticeship and is 22 they are entitled to the minimum wage of £6.95.
If you want to check what you need to pay a particular member of staff use the HMRC pay calculator
If you struggle to keep on top of all the changes within the payroll function then give us a call.
EA Assist Ltd can provide a cost effective payroll solution to meet your needs.