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National Living and Minimum Wage

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The Government's National Living Wage (NLW) was introduced on 1 April 2016 for all working people aged 25 and over, it was set at £7.20 per hour. It covers:

  • employees
  • most workers and agency workers
  • casual labourers
  • agricultural workers
  • apprentices who are aged 25 and over and who have completed their first year of apprenticeship

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice.

The rates from 1 October 2015 were set at:

  • £6.70 per hour for workers 21 and over
  • £5.30 per hour 18-20 yrs
  • £3.87 per hour for 16-17 yrs, who are above school leaving age but under 18
  • £3.30 per hour for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

As of October 2016 the new rates are:

  • £6.95 per hour - 21-24 yrs old
  • £5.55 per hour 18 - 20 yrs old
  • £4.00 per hour for 16-17 yrs, who are above school leaving age but under 18
  • £3.40 per hour for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

For the purpose of all of these calculations mobile workers who have no fixed place of work, and spend time travelling from home to the first and last customer, should have this time considered as working time.

The following people are exempt from this legislation

  • Self-employed people.
  • Volunteers or voluntary workers.
  • Company directors.
  • Family members, or people who live in the family home of the employer who undertake household tasks.
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