New National Minimum Wage & Auto Enrolment Rates

New rates regarding National Minimum Wage and Auto Enrolment contributions come into effect in April.

The Government is committed to enforcing payment of the legal minimum wage and HMRC is able to use a wide range of enforcement measures including civil penalties, ‘naming & shaming’ and criminal prosecution.

Employers must understand the importance of ensuring they do not fall foul of the new regulations and the level of penalty that can be applied. Failure to comply means not only having to pay backdated arrears to the workers but also the prospect of financial penalties of up to 200% of the underpayment (capped at £20,000 per worker) and disqualification from being a company director for up to 15 years.

The complexities of applying the national minimum wage have been illustrated in a number of cases over recent years, particularly in cases where travel and overnight work is involved.

The new National Minimum Wage and National Living Wage rates from 1 APRIL 2018 are as follows:

Aged 25 and over                          £7.83

Aged 21 – 24                                   £7.38

Aged 18 – 20                                    £5.90

Aged 16 – 17                                        £4.20

 Apprenticeship rate                   £3.70


The new minimum Auto Enrolment contribution rates from 6 APRIL 2018 are as follows:

Employer             2%

Employee             3%


For more information on these rates or how your business may be affected, please speak to your usual GMcG adviser or any of our Tax Team's Payroll specialists:

GMcG Belfast: Jenny Morgan

GMcG Lisburn: Janet Thompson

GMcG Portadown: Eva Mrazikova