Changes To Wages: What You Need To Know
*This is a living article and will be updated from time to time to stay up to date. This article was last updated on 4th April 2018.
The minimum wage threshold has increased again and the new rates are now below, effective from 1st April 2018.
The Current rates at the moment from 1st April 2017;
Year April 2017 (previous rate)
25 and over £7.50
21 to 24 £7.05
18 to 20 £5.60
Under 18 £4.05
From 1st April 2018 onwards, employers will need to be paying their staff who are between the ages of 21 and 24 years old a minimum of £7.38 per hour. That is a 33p per hour raise.
The 18 to 20-year-old threshold sees the minimum wage rise by 30p, from £5.60 to £5.90 per hour at a minimum. That's a much bigger increase than we've seen in recent years.
If you're under 18 then the wages from 1st April 2018 will now be a £4.20 per hour; with just a 15p per hour increase.
The Apprentices see a 20p per hour rise to £3.70 per hour. Remember, Apprentices who are over the age of 19 are only eligible for the apprenticeship rate in the first year. After this, they will need to go up to their relevant bracket. For example, a 22-year-old apprentice will be on £3.70 per hour for the first year of the apprenticeship but then they will move to the hourly rate of £7.38 per hour. This catches out a lot of employers who might not even be aware of this so if you hire apprentices then do bear this in mind.
The new rates from 1st April 2018 are summarised below in the table. Remember, all these rates will now increase in April each year at the start of a new tax year, instead of the usual October increases.
Year from April 2018
25 and over £7.83
21 to 24 £7.38
18 to 20 £5.90
Under 18 £4.20
Should you need any help with your payroll or you are unsure if you are paying your employees correctly then feel free to get in touch and we'd be happy to assist you. Let us know via email, Instagram, Twitter or Facebook.
About the author
Ben Nacca is an accountant but is nothing like the stereotype you have visualised in your mind! He has worked in the accounting industry for almost a decade and is CEO here at Cone.
Ben loves travelling the world, playing video games and playing his acoustic guitar whenever he finds the time between spending time with his two chihuahuas, Hugo and Pablo!