Letter Advising Worker of Pay Rate Increase Due to Moving to a Higher Age Band of the National Minimum Wage

This letter advising a worker that their pay rate is increasing as a result of moving to a higher age band of the National Minimum Wage (NMW) should be sent to employees just before their 18th birthday to inform them that their salary will be increasing in line with the requirements of the National Minimum Wage Act. With effect from the worker’s 21st birthday, the National Living Wage applies. There is a separate letter to cover this latter situation.

The National Minimum Wage Act 1998 sets down minimum hourly pay bands that apply to almost all employees. The standard rate is set by the government and may be subject to increase in April each year. Please refer to the gov.uk website for the latest rate of NMW.

Employers should be aware that a failure to increase a worker's pay to reflect an increase in the rate of the minimum wage is a breach of national minimum wage legislation.

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