According to the draft regulations, from 1 April 2018 the following hourly rates of NMW will apply:
the standard adult rate (workers aged between 21 and 24) - £7.38
the development rate (workers aged between 18 and 20) - £5.90
the young workers rate (workers aged under 18 but above the compulsory school age who are not apprentices) - £4.20
the rate for apprentices - £3.70
In addition, from 1 April 2018 the accommodation offset will be £7.00 each day.
There are a number of common scenarios where employers fall short of NMW:
Employers have a legal duty to ensure that workers are paid the NMW where applicable. We recommend that employers conduct a review of their existing salaried staff to ensure that they are paid in excess of the NMW. Employers should review the hours actually worked by each of their employees, with reference to their salary and the applicable hourly rate of NMW to ensure that they are compliant.
Finally, employers should be aware that if they do fall below NMW Regulations, they risk being publically 'named and shamed' by the government for NMW failures that amount to more than £100. This could result in long lasting reputational damage.