Increase in Minimum Wage

You will be aware that 1 April every year is the trigger for an increase in both the National Living Wage and the National Minimum Wage. This is to remind you that the current rates, effective from 1 April 2019, are as follows:

 

  • aged 25 and over     £8.21
  • aged 21 to 24            £7.70
  • aged 18 to 20            £6.15
  • aged under 18           £4.35
  • apprentice*               £3.90

*aged under 19 or aged over 19 and in the first year of their apprenticeship

 

You should be aware that almost all workers are entitled to these minimum wages, including casual workers, temporary workers and part-time workers.  Failure to pay the minimum wage can not only lead to employment claims but also to fines, with the maximum fine for non-payment at £20,000 per worker. Employers who fail to pay can also be publicly named by HMRC and directors banned for up to 15 years.

 

You should also be aware that from 6 April 2019 a maximum “week’s pay” for the purposes of calculating various Tribunal awards and a statutory redundancy payment, increases from £530.00 to £547.00. This means that the maximum statutory redundancy payment is increased to £16,410.00, whilst the limit on the amount of a compensatory award in an unfair dismissal claim increases to £86,614.00.

 

The “week’s pay” set out above will apply to Northern Ireland only whilst a lower rate (£508.00 currently) applies in England and Wales.

 

Should you need any further assistance, please contact Patricia Rooney or a member of the Employment Team.

 

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.