Newsline from Build UK

National Minimum Wage and Parental Pay Rates Increase

06 April 2017

National Minimum Wage and Parental Pay Rates Increase

The National Minimum Wage (NMW) and apprenticeship rates have increased as part of changes to the rates and thresholds for employers.

The compulsory National Living Wage (NLW), which covers workers who are 25 and over, has increased from £7.20 an hour to £7.50. The current rates are as follows:

Year

25 & over 21-24 18-20 Under 18 Apprentice

April 2017
(current rate)

£7.50
(NLW)
£7.05 £5.60 £4.05 £3.50


Apprentices who are under 19, or 19 and over and in the first year of their apprenticeship now earn £3.50 an hour.

The statutory rates for maternity pay (SMP), paternity pay, shared parental pay and adoption pay have increased from £139.58 to £140.98 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate).

The rate of statutory sick pay has also increased from £88.45 to £89.35. To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit which has increased from £112 to £113.

Further information, including the Government’s NMW and NLW calculator for employers and eligibility criteria, is available on the Government website. Build UK members can receive free employment advice by contacting the Croner Helpline on 0844 249 9874.