Are you one of the many employers confused by the terminology used for minimum pay rates?

With the National Minimum Wage, National Living Wage and Living Wage, employers can be left scratching their head wondering how much they are legally required to pay their workers and who is entitled to receive it.

Employers have been caught out by minimum wage rules.

Some organisations, including big brands, have even been named and shamed for failing to pay the minimum. In order to ensure you are complying with the law and to avoid reputational damage, we explore the different terminology and give you current rates.

Don’t get caught out – the latest statutory pay requirements are listed below.

Effective 1 April 2019

MINIMUM WAGE RATES

The minimum wage rate varies according to age and whether the individual is an apprentice.

The National Living Wage (the rate for those aged 25 and over) is £8.21 per hour.

The National Minimum Wage (for those under the age of 25) is as follows:

  • for 21 to 24 year olds, the rate is £7.70
  • for 18 to 20 year olds, the rate is £6.15
  • for 16 to 17 year olds, the rate is £4.35
  • for apprentices, the rate is £3.90. Apprentices have the right to this rate if they are under 19 or if they are 19 or over and in their first year of their apprenticeship.

Effective 6 April 2019

STATUTORY SICK PAY

As of 6 April 2019, qualifying employees are entitled to £94.25 Statutory Sick Pay per week.

STATUTORY MATERNITY PAY

Qualifying employees are entitled to receive Statutory Maternity Pay for up to 39 weeks as follows:

  • 90% of gross average weekly earnings for first six weeks’ leave and
  • £148.68 per week or 90% gross average weekly earnings (whichever is lower) for a further 33 weeks.

STATUTORY PATERNITY PAY

Qualifying employees are entitled to receive £148.48 per week or 90% gross weekly earnings (whichever is lower).

STATUTORY SHARED PARENTAL PAY

Qualifying employees are entitled to receive £148.48 per week or 90% gross weekly earnings (whichever is lower).

If you have doubts as to your national minimum wage obligations, give our Employment Law Advisers a call to get bespoke and comprehensive advice.

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