Features

Guide to: National minimum/living wage

HR expert Jacqui Mann sets out everything you need to know about increases to the minimum wage rates which came into force this month

The National Minimum Wage Act 1998 gives workers the right to a specified minimum hourly rate of pay. The latest increase took effect from 1 April.

National Living Wage vs National Minimum Wage

Don’t confuse it with the Living Wage, which is set independently and calculated on the basic cost of living in the UK – employers can choose to pay it if they wish.

Contracts for payments below the minimum wage are not legally binding. It is a criminal offence for employers not to pay the minimum wage to those entitled to it or to falsify payment records. It is the duty of the employer to ensure the correct rate is paid.

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