Philip Hammond, who made an announcement during his Budget 2017 speech, said workers will benefit from an increase of 4.7% on the week of the new tax year.
He also mentioned employment is at a record high. Unemployment is at an 11 year low, with over 2.7 million more people enjoying the security and dignity of work than in 2010.
A far cry from the 3 million unemployed predicted. And on International Women’s Day, that there is now a higher proportion of women in work than ever before.
Here are the new NLW and NMW from April 2018
National Living Wage (minimum wage for over-25s) to increase from £7.50 to £7.83 an hour from April 2018
Minimum wage aged 21-24 to rise from £7.05 to £7.38
Minimum wage aged 18-20 to rise from £5.60 to £5.90
Minimum wage aged 16-17 to rise from £4.05 to £4.20
Apprentice wages to rise from £3.50 to £3.70
The hours that are used in a national minimum wage calculation are dependent upon work type as defined within the National Minimum Wage Regulations 1999. The different work types are time work, salaried hours work, output work and unmeasured work. Hours to be paid for are those worked in the "pay reference period", but where pay is not contractually referable to hours, such as pay by output, then the time actually worked must be ascertained.
The principle is that the rate of pay for hours worked should not fall below the minimum. Periods when the worker is on industrial action, travelling to and from work and absent are excluded. A worker who is required to be awake and available for work must receive the minimum rate. This does not prevent use of "zero hour contracts", where the worker is guaranteed no hours and is under no obligation to work.
If an employee receives tips at work, they cannot legally be counted towards their National Minimum or Living Wage entitlement, they must be paid on top. If tips are counted as part of their pay, and you rely on them to bring their pay up to the National Minimum or Living Wage, then you could be illegally underpaying your staff.
If your employer has deducted your wages to cover the cost of items connected with your job such as uniform, safety clothing, specified work wear or tools etc. then you may have been underpaid. Deductions for items connected with the job must not take you below the National Minimum or Living Wage for any given pay period. Think you might be underpaid? Your employer could owe you back pay. Call the Acas helpline for confidential advice on 0300 123 1100 or register a complaint with HMRC.
Learn more here