What is National Minimum Wage?

On 1 April 1999, the National Minimum Wage (NMW) was introduced and set minimum hourly wage rates for two bands:

1.    those aged between 18 and 21

2.    those over 22

The Low Pay Commission review the rates each year and put forward recommendations to the Government.  

The rates and number of bands have increased over the years and with effect from April 2019 the bands and rates are:
 

*This is know as the National Living Wage

**Apprentices are entitled to the apprentice rate if they are either:

• under 19

or

• 19 or over and in the first year of their apprenticeship

Apprentices who are over 19 and have completed the first year of their apprenticeship are entitled to the NWM.

It is against the law to pay workers below the NMW or NLW and HMRC will issue penalties for not applying the correct rate of pay.

More information can be found at https://www.gov.uk/national-minimum-wage-rates

Bishop Fleming Payroll Services can help you to make sure that you are paying your staff at the correct rate.