The national minimum wage applies to anybody that has reached the school leaving age, with the national living wage applying to those aged 25 and over.
The current rates along with the new rates are below:
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
|April 2019 (current rate)||£8.21||£7.70||£6.15||£4.35||£3.90|
So, if you currently employ a 22-year-old who is earning less than £8.20 per hour then you will need to ensure that person receives a pay increase to at least £8.20 for April 2020 in order to comply with the new legal rates.
A common question we get asked is “What should I do as an employer?” as such here are some steps, we encourage employers to take:
If you have outsourced your payroll services then your provider will help to ensure you remain compliant with the new legislation. However it is important to contact them to enquire about any changes that may be required.
If you would like more information on this topic or if you are thinking of outsourcing your payroll services then please feel free to get in touch at [email protected] and we would be pleased to help.