New rates for the National Minimum Wage (NMW) take effect from 1 April 2019, and employers must ensure that they implement them accordingly. The rates are as follows:
- 25 and over – £8.21 per hour;
- 21- to 24-year-olds – £7.70 an hour;
- 18- to 20-year-olds – £6.15 an hour;
- 16- to 17-year-olds £4.35 an hour; and
- Apprentice rate – £3.90 an hour.
The increased NMW penalty took effect from 1 April 2016 and applies to any notice of underpayment relating to a pay reference period beginning on or after that date. Broadly, the penalty percentage which may be imposed for non-compliance has been increased from 100% to 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.