The National Minimum Wage (NMW) is the minimum pay rate that almost all workers in the UK are entitled to. It is a legal requirement for employers to pay their employees at least the NMW, and it applies to all workers who are at least school leaving age (16 years old).
The NMW rates change annually on April 1st. For 2024, the rates are as follows:
The National Living Wage (NLW) is a higher rate for workers aged 21 and over. It is also a legal requirement for employers to pay their employees at least the NLW if they meet the eligibility criteria.
To be eligible for the NMW or NLW, workers must be at least school leaving age (16 years old) and meet specific criteria. Apprentices are entitled to a minimum hourly rate if they are in their first year of apprenticeship or both in their first year and aged 21.
The NMW and NLW rates have increased over time, with the largest percentage increase seen in the 16-17 age group (21.2%). The accommodation offset rate has also increased, with a 9.8% increase.
To ensure you're paying the correct minimum wage, you can use the NMW calculator or NLW calculator. These tools can help you determine the minimum wage you need to pay your employees.
In conclusion, the National Minimum Wage and National Living Wage are essential for ensuring that workers in the UK are paid a fair wage. Employers must comply with the law and pay their employees at least the NMW or NLW, depending on their age and eligibility. By following the step-by-step guide and using the available resources, employers can ensure they're meeting their responsibilities and paying their employees the correct minimum wage.
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