Minimum wage increases come into effect

increase your rental income

Minimum wage increases come into effect

The new National Minimum Wage (NMW) and National Living Wage (NLW) rates came into effect on 1 April 2019. The NLW was introduced on 1 April 2016 and is the minimum hourly rate that must be paid to those aged 25 or over. The NLW increase is the biggest single increase since the rate was introduced. The new rate is £8.21 which is a 38p or almost 5% increase. This means that some 1.8 million employees earning the NLW will see an extra £690 a year in their pay packet.

The hourly rate of the NMW (for 21-24-year-olds) increased to £7.70 (a rise of 32p). The rates for 18-20-year-olds increased to £6.15 (a rise of 25p) and the rate for workers above the school leaving age but under 18 increased to £4.35 (a rise of 15p). The NMW rate for apprentices increased by 20p to £3.90.

The new rates mirror the recommendations made by the Low Pay Commission (LPC) which were accepted in full by the Government. The independent Low Pay Commission (LPC) was established following the National Minimum Wage Act 1998 to advise the government on the NMW. It is made up of representatives from all sides of the industry.

There are significant penalties for employers who are found to have paid workers less than they are entitled by the legislation.

If you want to know more about Minimum wage increases come into effect, Book a meeting or contact us for more details.

Need Accountancy Support?

For information on bespoke training, or if you have any other questions for Makesworth Accountant, please fill in your details below



    By submitting the form, you agree with the storage and handling of your data to contact you to arrange a free consultation with us and to receive latest updates by Makesworth Accountants in accordance with our Privacy Policy

    Proud to be featured in

    Happy with our services? Please leave us a Google Review. Click here