As an employer, you probably know you have to pay workers aged 25 or over at least the National Living Wage (NLW), while you should pay younger workers at least the National Minimum Wage (NMW). It’s the law.
If you don’t pay your people enough, HMRC can take you to court. The maximum fine is £20,000 per worker AND you can be banned from being a company director for up to 15 years.
That’s why it’s important for you to be aware that the legal minimum rates change on Monday.
Here’s the least you should pay your staff from 1 April 2019:
- £8.21 per hour if they are aged 25 or over
- £7.70 per hour if they are 21 to 24
- £6.15 per hour for 18 to 20 year olds
- £4.35 per hour for workers between school-leaving age and 17
- £3.90 per hour for apprentices aged under 19 or in their first year of apprenticeship
As with many legal matters, the whole picture is slightly more complicated than that.
These minimums apply to home-workers, piece-workers, agency-workers, commission-workers, part-timers and casual staff.
You don’t have to pay NLW or NMW to self-employed workers, volunteers, company directors, members of your family who live with you (in certain circumstances), or work experience students.
If you have any questions about employment law, do get in touch. We’ll be happy to help.