The National Minimum Wage 2019 will increase to £8.21 per hour for adults aged 25 and over. Different rates apply to those aged under 25.
National Minimum Wage 2019 rates
The rate increases are as follows:
- workers aged 25 and over will see an increase to £8.21 per hour (previously £7.83)
- those aged between 21 and 24 will see an increase to £7.70 per hour (previously £7.38)
- workers aged between 18 and 20 will see an increase to £6.15 per hour (previously £5.90)
- those aged between 16 and 17 will see an increase to £4.35 per hour (previously £4.20)
- apprentices aged under 19 or in 1st year of apprenticeship to increase to £3.90 (previously £3.70)
When do the above rates apply?
The above rates are compulsory from 1st April 2019.
National Minimum Wage and National Living Wage definition
The National Living Wage is the minimum amount payable to workers aged 25 and over.
The National Minimum Wage is the minimum amount payable to workers 24 or under.
The above are not to be confused with the UK Living Wage. This is an independent calculation by the Living Wage Foundation. Employers can choose to adopt the UK Living Wage but this is voluntary.
National Minimum Wage 2019 exceptions
Some workers aren’t automatically entitled to the National Minimum Wage or the National Living Wage.
The main exceptions are self-employed, company directors, volunteers and students on work placement.
Tax Tip: We recommend that company directors are paid below the National Minimum Wage 2019 rates. Read our blog Optimum Directors Salary 2019/20 for more information.
Steps to take
Obtain the date of birth for all workers then:
- Ensure those 25 and over are paid the National Living Wage of £8.21
- Ensure those aged under 25 are paid the National Minimum Wage between £4.35 and £7.70
- Finally note all workers aged 17, 20 and 24 and ensure that their birthdays are noted as they will need to change to a different pay group. E.g A 24 year old will need to be paid a minimum of £8.21 when they have their 25th birthday.
Also see National Minimum Wage 2018
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