The national minimum wage and national living wage rates will rise from 1 April 2018.

Eligible workers aged 25 and over who are not in their first year of an apprenticeship will be entitled to the new national living wage rate of £7.83.

Those aged 21-24 will see their hourly wage rise to £7.38.

Apprentices will benefit from a record rise of 5.7%, according to the government, with the hourly apprentice rate increasing to £3.70.

The apprentice rate applies to those aged 16-18 and 19 or over in their first year.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2017 £7.50  £7.05 £5.60  £4.05  £3.50 
From 1 April 2018 £7.83  £7.38  £5.90  £4.20  £3.70 

This comes after the government ‘named and shamed’ 179 employers for failing to pay their workers the minimum wage, charging fines of £1.3 million in total.

Quote from Nigel Holland:

“Employers need to ensure that they stay within the national minimum wage. Not only will they be avoiding a backlash from the public once they get caught underpaying staff, but they will be saving money in the long run.

As a result of underpaying staff, employers can face a minimum fine of £100 up to £20,000. This penalty is set at a payment of 200% of the total underpayment. Also, The Department for Business, Energy and Industrial Strategy name and shame businesses that underpay their staff which could cause the business overall to gain a bad reputation.

Thus to avoid these consequences, employers should make sure that they are paying their staff above or equal to the national minimum wage.”