New National Minimum Wage (NMW) and National Living Wage (NLW) rates come into effect from 1 April 2019.
The NMW is the minimum pay per hour most workers under the age of 25 are entitled to by law, while the NLW is the minimum pay per hour most workers aged 25 and over are entitled to by law. The rate also depends on whether the worker is an apprentice or not.
The new rates are:
- £8.21 per hour for ages 25 and over (was £7.83)
- £7.70 per hour for ages 21 to 24 (was £7.38)
- £6.15 per hour for ages 18 to 20 (was £5.90)
- £4.35 per hour for school leaving age to 17 (was £4.20)
- £3.90 per hour for apprentices (was £3.70)
The new rates will apply to the next pay reference period that begins on or after the date:
- a rate increase begins
- an employee reaches a new age bracket
For example, an employee paid on the 20th of each month will start to receive the new rate of minimum wage from 21 April onwards.
If a worker receives above NMW there is no legal obligation on an employer to increase their pay when the NMW rate increases.
More information and a minimum wage rate calculator can be found on the Acas website.