From 1st October this year, the National Minimum Wage (NMW) will rise again, with the main rate rising for those aged under 25 years’ old. The National Living Wage rates change every April and the current applicable rate is £7.20 per hour for workers aged 25 or over.
The new hourly rates will therefore be as follows:
- £7.20 for those aged 25 and over (National Living Wage)
- £6.95 for those aged 21-24
- £5.55 for those aged 18-20
- £4.00 for those aged 16-17
- £3.40 for apprentices under 19 (or over 19 in their first year of apprenticeship)
Failure to pay the NMW could result in naming and shaming by the government and having to promptly address the underpayment. A failure to do so could result in a fine of up to 200% of the amount owed, subject to a maximum of £20,000 per worker. For recruiters the increase in NMW is always a consideration in terms of costs and ensuring that the increased costs of supplied workers can be met.
For example, recruiters should consider whether they can pass this increased cost to hirers with a view to retaining their current margin.
For advice relating to pay, contract terms and changing rates with hirers, contact Lawspeed on 01273 236 236, or firstname.lastname@example.org