National Minimum Wage and National Living Wage

The charity must ensure that it pays workers the National Minimum Wage (NMW) or National Living Wage (NLW) as appropriate. The NMW is updated in October each year and the NLW is updated every April.

In 2019 the rates are as follows:

  1. £8.21 per hour for workers aged 25 years and older (NLW)
  2. Age 21 to 24: £7.70/hour
  3. Age 18 to 20: £6.15/hour
  4. Age under 18: £4.35/hour
  5. Apprentice £3.90/hour

More information can be found online.

The charity must not make deductions from employees’ pay that would take their pay below the NMW/NLW, even if the employee agrees to it, except if the deduction is for:

  • Tax or NICs
  • Something the employee has done and their contract of employment says they are liable for, e.g. a shortfall in a till if the employee works in a shop
  • Repayment of a loan or advance of wages
  • Repayment of an accidental overpayment of wages
  • Buying shares or share options in the business
  • Accommodation provided by the charity (subject to the accommodation offset rate, currently £7.55 per day – see more details here)
  • The employee’s own use, e.g. pension contributions

A National Minimum Wage and Living Wage calculator for employers, can be found here.

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