Changes to NMW Rates

Workers on the National Minimum Wage can expect higher rates of pay from today.

The NMW is the minimum pay per hour that almost all workers are entitled to by law. The rate they should receive depends on their age and whether they are an apprentice.

The new rates of pay are:

• £6.70 for those aged 21 and over
• £5.30 for 18 to 20-year-olds
• £3.87 for under 18s
• £3.30 for apprentices in their first year of employment*

No matter how large or small the business, it is an obligation for an employer to ensure all staff earning National Minimum Wage are paid correctly at the new rates.

It is a criminal offence for employers not to pay workers correctly or to falsify payment records.

Failure to pay the right rate could result in a penalty of up to £20,000 per worker and offending businesses could be ‘named and shamed’ by the Government. In addition, employers paying a worker below the minimum wage must also pay any arrears immediately.

A number of tools are available on the government’s National Minimum Wage website to assist companies in making the change. Alongside this resource, employment organisation, Acas, has set up an online helpline in addition to their existing telephone helpline (0300 123 1100) to provide support in correcting any issues.

* If apprentices are aged 19 or above, second year pay should be in-line with the National Minimum Wage rates for their age group – for example £5.30 if they are aged 19 or 20 or £6.70 if they are 21 or above.

ENDS

Press release issued by the GLA on behalf of the Department for Business Innovation and Skills (BIS).

Notes to editors

1. The GLA operates throughout the UK and is a Non-Departmental Public Body.

2. The authority was formed in 2005 in the wake of the Morecambe Bay cockle picking disaster when 23 Chinese workers drowned on the sands.

3. The GLA licences companies that supply labour (gangmasters) for agriculture, horticulture, shellfish gathering as well as all associated processing and packaging.

4. Its main strategic priorities are to prevent worker exploitation, protect vulnerable people and tackle unlicensed and criminal activity.

5. Under the Gangmasters (Licensing) Act (2004), it is illegal both to operate as, or employ the services of, an unlicensed gangmaster.

www.gla.gov.uk