close menu

Incoming minimum wage increase for UK workers

by Scott Brown | Mar 13, 2017
  • As of 1 April 2017, the National Minimum Wage is set to increase to £7.50 an hour. The increase was announced in Chancellor Philip Hammond’s annual Autumn Statement last year. Hammond said he hopes to get the minimum wage to £9 an hour by 2020.
    Coin stacks

    Current vs new minimum wage

    The new hourly rate will depend on your age as well as whether or not you’re an apprentice.

    The table below compares the current and new rates for various age categories.

    25 and over 21 to 24 18 to 20 Under 18 Apprentice
    Current rate £7.20 £6.95 £5.55 £4.00 £3.40
    April 2017 £7.50 £7.05 £5.60 £4.05 £3.50

     

    Who is entitled to the National Minimum Wage?

    Workers must be at least 16 years old (school leaving age) to be entitled to the National Minimum Wage. If a worker signs a contract for a payment below minimum wage, it is not legally binding and they are still entitled to the National Minimum Wage.

    Workers are also entitled to the minimum wage if they are:

    • Foreign workers
    • Part-time workers
    • Casual labourers (e.g. hired to work for one day)
    • Agency workers
    • Apprentices
    • Trainees, workers on probation
    • Disabled workers
    • Offshore workers
    • Seafarers
    • Agricultural workers
    • Workers or homeworkers paid by the number of items they make

    Payslips

    Payslips should have a full breakdown of your salary, including how much you are earning before and after deductions. Your payslip must also indicate any deductions that may change each time you are paid, such as National Insurance contributions and tax.

    Employers can choose whether they want to provide printed or electronic payslips, but they must be provided on or before payday every month.

    Whether you are paid hourly, annually or per piece of work, you need to ensure that you are being paid the minimum wage. If you work in a restaurant or similar service industry where you receive tips, you aren’t allowed to be paid from your tips – you are still entitled to the National Minimum Wage.

    Penalties for employers

    Employers who do not comply with the new rates will incur significant penalties. If it is found that an employer hasn’t been paying minimum wage, any arrears must be paid out immediately, the employer will be fined and may even be named by government.

    It is a criminal offence for employers not to pay their employees the correct National Minimum Wage or to fake payment records. The employer is responsible for keeping records to prove that they are paying their workers the correct wage. All payroll records must be kept for three years in case of investigation.

    Our dedicated accountants can take care of your payroll and ensure your employees are receiving the correct wage. Give us a call on 020 7759 7553 or send us an email on payroll@sableinternational.com and we’ll be in touch with you shortly.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Business-concept
      Moving your business to the UK? You’ll need to understand the UK’s VAT regulations
      Nov 12, 2018  |  by Scott Brown
    • Autumn-statement-banner-no-logo-white
      Highlights from the 2018 Autumn Statement
      Oct 30, 2018  |  by Scott Brown
    • man-in-front-of-shop
      A quick guide to UK business tax
      Oct 26, 2018  |  by Scott Brown
    • working-man-contractor
      Self-employment vs. contracting in the UK: What’s the difference?
      Oct 11, 2018  |  by Kobus Van den Bergh
    • man-relaxing
      Why your SME needs management accounting
      Oct 10, 2018  |  by Scott Brown
    • yes no cross tick
      HMRC’s employment status test continues to frustrate UK contractors
      Sep 24, 2018  |  by Kobus Van den Bergh
    • Money
      Leaving the UK? Get some extra cash by claiming your tax refund
      Sep 20, 2018  |  by Kobus Van den Bergh
    • Businessman-on-graph
      How you can stop worrying and learn to love outsourced accounting
      Aug 03, 2018  |  by Scott Brown
    • tax-deadlines
      Self Assessment deadline reminder! Second payment due end of July
      Jul 25, 2018  |  by Kobus Van den Bergh
    • magnifying-glass-contract
      IR35: Are you in or are you out?
      Jul 02, 2018  |  by Kobus Van den Bergh
     
     

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120

    Durban

    25 Richefond Circle
    Ridgeside
    Umhlanga 4320 +27 (0) 31 536 8843

    United Kingdom

    London

    Castlewood House
    77/91 New Oxford Street
    WC1A 1DG +44 (0) 20 7759 7514

    Croydon

    5-7 Selsdon Road
    South Croydon
    CR2 6PU +44 (0) 20 7759 7581

    Australia

    Melbourne

    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services License issued by ASIC to deal in foreign exchange (1st Contact Group - AFS License number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.