National Minimum and National Living Wage

The rates for the National Minimum Wage (NMW) and National Living Wage (NLW) increased on the 1st April 2017. The hourly minimum wage a worker is entitled to depends on their age and whether they are an apprentice. 

The NLW for those aged 25 and over has increased from £7.20 to £7.50 per hour.

The table below illustrates the change in NMW rates.

Apprenticeship Levy

As part of the Government's commitment to apprenticeships and their policy pledge to provide backing for three millions apprenticeships by 2020, in the summer budget of 2015, the Department of Business Innovation and Skills (BIS) announced that an apprenticeship levy will be introduced in April 2017 that will affect all employers with an annual pay bill of £3M or greater. The pay bill will be caluculated on total employee earnings liable to Class one secondary NICs (i.e. NIC-able pay). The levy sum will be calculated on this pay bill at 0.50% subject to an annual allowance of £15,000. 


From the 6th of April 2017 codes with a suffix of 'L' have been increased by 50 points, codes with a suffix of 'M' have been increased by 55 points and codes with a suffix of 'N' have been increased by 45 points unless a coding notice has been issued by HMRC.  The emergency code for 2017/18 is 1150L.


Statutory Payments

Employment Allowance

The Employment Allowance (EA) reclaim continues into 2017/18 at the rate of £3,000 p.a. The entitlement allowance criteria for reclaiming the EA remains unchanged. 

Salary Sacrifice

Following the announcement by the Government in 2016 of the restrictions placed with effect from the 6th April 2017, employers are no longer allowed to utilise salary sacrifice for any other purpose than of those listed below (until there is an end, change , modification or renewal of the contract / From the 6th April 2018, except for cars, accommodation and school fees when the last date is the 6th April 2021):

  • Employer provided pension saving
  • Employer provided pensions advice
  • Childcare vouchers
  • Workplace nurseries
  • Directly contracted childcare
  • Cycle to work schemes
  • ULEVs emitting 75g CO2/km or less