close menu

Incoming minimum wage increase for UK workers

by Scott Brown | Mar 13, 2017
  • As of 1 April 2017, the National Minimum Wage is set to increase to £7.50 an hour. The increase was announced in Chancellor Philip Hammond’s annual Autumn Statement last year. Hammond said he hopes to get the minimum wage to £9 an hour by 2020.
  • Coin stacks

    Current vs new minimum wage

    The new hourly rate will depend on your age as well as whether or not you’re an apprentice.

    The table below compares the current and new rates for various age categories.

    25 and over 21 to 24 18 to 20 Under 18 Apprentice
    Current rate £7.20 £6.95 £5.55 £4.00 £3.40
    April 2017 £7.50 £7.05 £5.60 £4.05 £3.50


    Who is entitled to the National Minimum Wage?

    Workers must be at least 16 years old (school leaving age) to be entitled to the National Minimum Wage. If a worker signs a contract for a payment below minimum wage, it is not legally binding and they are still entitled to the National Minimum Wage.

    Workers are also entitled to the minimum wage if they are:

    • Foreign workers
    • Part-time workers
    • Casual labourers (e.g. hired to work for one day)
    • Agency workers
    • Apprentices
    • Trainees, workers on probation
    • Disabled workers
    • Offshore workers
    • Seafarers
    • Agricultural workers
    • Workers or homeworkers paid by the number of items they make


    Payslips should have a full breakdown of your salary, including how much you are earning before and after deductions. Your payslip must also indicate any deductions that may change each time you are paid, such as National Insurance contributions and tax.

    Employers can choose whether they want to provide printed or electronic payslips, but they must be provided on or before payday every month.

    Whether you are paid hourly, annually or per piece of work, you need to ensure that you are being paid the minimum wage. If you work in a restaurant or similar service industry where you receive tips, you aren’t allowed to be paid from your tips – you are still entitled to the National Minimum Wage.

    Penalties for employers

    Employers who do not comply with the new rates will incur significant penalties. If it is found that an employer hasn’t been paying minimum wage, any arrears must be paid out immediately, the employer will be fined and may even be named by government.

    It is a criminal offence for employers not to pay their employees the correct National Minimum Wage or to fake payment records. The employer is responsible for keeping records to prove that they are paying their workers the correct wage. All payroll records must be kept for three years in case of investigation.

    Our dedicated accountants can take care of your payroll and ensure your employees are receiving the correct wage. Give us a call on 020 7759 7553 or send us an email on and we’ll be in touch with you shortly.

    • man-working-at-home
      Get the most out of being a contractor in the UK by following these simple steps
      Mar 15, 2018  |  by 1st Contact
    • tax-hand-magnifying-glass
      Reap the benefits of submitting your Self Assessment tax return early
      Mar 02, 2018  |  by Kobus Van den Bergh
    • students-graduating
      UK student visas: Here's how you can get one
      Feb 22, 2018  |  by John Dunn
    • students-school-chalk-board
      Get your child into state-funded school in the UK
      Feb 21, 2018  |  by Leanne Shrosbree
    • medical-cross-and-heart
      The NHS vs Medicare: Which is better?
      Jan 30, 2018  |  by 1st Contact
    • big-ben-london-at-night
      What is the cost of living in London in 2018?
      Jan 25, 2018  |  by 1st Contact
    • house-key
      To rent in the UK, you absolutely need to have the right to rent
      Jan 19, 2018  |  by Leanne Shrosbree
    • man-making-more-money
      This is how contractors can take home more cash
      Jan 09, 2018  |  by Kobus Van den Bergh
    • airport-waiting-takeoff-plane
      5 pro tips for surviving your long-haul flight
      Dec 19, 2017  |  by Kobus Van den Bergh
    • young-friends-drinking-beer-at-pub
      10 interesting facts about the UK working holiday visa
      Nov 27, 2017  |  by John Dunn

    Do you like cookies? We do, read why.