A poll carried out by the UK charity group, Young Women’s Trust, has revealed that workers under the age of 25 are missing out on more than £6,000 in wages a year simply because they’re not entitled to the national living wage (NLW).
4,010 people aged between 18 and 30 were questioned and it was found that the average young worker is paid £3.45 per hour less for doing the same work as older people.
Over the course of the year, this means that younger workers are receiving £6,279 less than their older colleagues.
Apprentices under the age of 25 fall short of the current NLW rate of £7.50 an hour – leaving them £7,280 a year worse off than workers over 25.
In light of this, 83% of under-25s support the idea of raising the minimum wage for apprentices and 79% suggest equal pay by extending the NLW to under-25s.
Dr Carole Easton OBE, chief executive for Young Women’s Trust, said:
“Much more needs to be done to improve young people’s prospects […] significantly increasing the apprentice minimum wage and changing the law to ensure under-25s are entitled to the same NLW as everyone else.”
Checks and compliance
Please remember that it’s a legal requirement for all employers to pay their staff the NLW or national minimum wage (NMW). If you’re unsure about any aspect of this, please contact us about our payroll services.
Failure to comply with NLW and NMW terms will result in a fine from HMRC and you could also be named by the government – something which is likely to harm your reputation.
The table below provides a handy guide to the current NMW and NLW rates.
From 1 April 2017
|21 to 24||£7.05|
|18 to 20||£5.60|
|16 to 17||£4.05|
*Rate applies for under-19s or first-year apprentices.