New rates for the National Minimum Wage (NMW) and National Living Wage (NLW) (aged 25 and over) apply from 1 April 2018, and employers must ensure that they implement them accordingly. The rates are as follows:

– 25 and over – ?7.83 per hour;
– 21 – to 24-year-olds – ?7.38 an hour;
– 18 – to 20-year-olds – ?5.90 an hour;
– under 18s – ?4.20 an hour; and
– Apprentice rate – ?3.70 an hour.

Severe penalties may be imposed for failure to comply with NMW/NLW obligations. Broadly, the?penalty percentage which may be imposed for non-compliance is now 200%. The maximum penalty is a hefty ?20,000 per worker, although it may be reduced by 50% if the unpaid wages and the penalty are paid within 14 days.

For further information on the NMW, see the GOV.UK website at?https://www.gov.uk/national-minimum-wage-rates.