27 Feb Wage increases in April 2018
Wage Increase in April 2018
In April 2018 we will see an increase in the National Minimum and Living wage.
The current NLW for those over 25 is £7.50 per hour, for those aged 21 -24 the NMW is currently £7.05, for those 18-20 its £5.60 and under 18’s £4.05. Apprentices minimum wage is £3.50.
From April 2018
In April 2018 the National Living and Minimum Wage will increase as per below:
NLW Over 25 £7.83
NMW 21-24 £7.38
NMW 18-20 £5.90
NMW 16-17 £4.20
13,000 Underpaid workers
The government identified that 13,000 workers hadn’t received their correct wages with regard to minimum and national wage levels. Some of those guilty of this were high street names. The Department for Business Energy and Industrial Strategy published the list in August 2017 of 233 companies throughout the UK who failed to pay their workers the right amount. As well as having to pay the money they owed to their staff, these companies were fined a record £1.9 million by the government.
Common errors made including deducting money from pay packets for uniforms, failure to account for overtime and wrongly paying apprentice workers.
HMRC also had a wide range of excuses for not getting it right which included:
- The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage.
- My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone!
- She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.
These are just a few – some of the other excuses are just too embarrassing to put on here!
The Living Wage Increase
A number of employers, including companies such as Google, IKEA and Aviva pay the Living Wage which is a UK rate based on living costs. This is set to rise to £8.75 or £10.20 in London in April. More than 1,000 small businesses have signed up to pay the Living Wage so their employees can earn a wage that meets the real cost of living. If you would like to be a National Wage Employer you can find out more here: [https://www.livingwage.org.uk/what-real-living-wage]
So don’t get it wrong. Remember to check the new NLW and NMW for April 2018 onwards or risk a fine from the government. They have invested heavily in marketing campaigns to ensure people know what they should be paid.
Payroll made easy
If you find keeping up to date with the latest changes, and new pay legislation like the minimum wage, why not outsource it to EA Assist. We help lots of employers with payrolls and manage workplace pensions as part of the service and make sure that everything is submitted correctly and on-time.