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Increase in the National Living Wage & National Minimum Wage

Posted: Thu 30 Mar 2017

As of April 1st 2017 both the National Living Wage (NLW) and the National Minimum Wage (NMW) will be increasing. With all workers being entitled to a rise in their pay.  Please see below the new rates of pay, which will start from the 1st of April 2017;

Age Band

Hourly Rate

Aged 25 and over

£7.50

Aged 21 to and including 24

£7.05

Aged 18 to and including 20

£5.60

Aged 16 to and including 17

£4.05

Apprentices under 19, or 19 or over who are in the first year of apprenticeship.

£3.50

The National Living Wage came into effect as of April 2016 and was set up with a view of increasing to an hourly rate for £9.00 for workers aged 25 and over by 2020. It is reviewed and increased incrementally each April. Workers under the age of 25, including apprentices, are also entitled to a pay rise this April, as there is also an increase in the National Minimum Wage. 

Key points according to ACAS.

  • The compulsory National Living Wage is the national rate set for people aged 25 and over.
  • Most workers over school leaving age will be entitled to receive the National Minimum Wage.
  • Both the National Minimum Wage & the National Living Wage rate is reviewed annually by the Low Pay Commission.
  • HM Revenue & Customs (HRMC) can take employers to court for not paying the National Minimum Wage or the National Living Wage.
  • There are a number of exemptions to those who receive the National Minimum Wage or the National Living Wage. These do not relate to the size of the business, sector, job or region. 

If you’d like to know more about the increases in pay and the impact this may have on you as a candidate or a business? Then please contact our team and we’ll be happy to explain what this means for you. 

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