Carla: Financial Inclusion Mentor
Hello, I am Carla. I am going to speak about getting your first job. The information I will speak about is: National Minimum Wage, Tax and Personal Allowances and how to read a wage slip.
“Hello I am Carla, I’m a Financial Inclusion Mentor at GEMAP. I am going to speak about getting your first job. The information I will talk about is; National Minimum Wage, Tax and personal allowances and how to read a Wage Slip”.
I've put together some invaluable information below, for those about to start their first job...
What is National Minimum Wage (NMW)?
National minimum wage is the minimum hourly rates set by the government which all employers big or small must pay their staff, by law. NMW rates depend on your age and if you are an apprentice. Usually every year in October these rates increase. See below for rates 2015/16…
Year - 2015 (current rate)
21 and over = £6.70
18 to 20 = £5.30
Under 18 = £3.87
Apprentice* = £3.30
*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. When you are 19 or over in your second year of apprenticeship you are entitled to NMW.
Although these are the rates set by the government and you cannot pay any less by law, an employee can choose to pay you as much more as they wish.
In addition to NMW there is a thing called National Living Wage (NLW) which is a rate of pay calculated by research of the basis cost living in the UK. From April 2016 the government will set a mandatory NLW for people aged 25+. The initial rate will be £7.20 per hour, a rise of 50p from the original of £6.70 NMW. Over the year that’s an increase of £910 for a full time worker.
Who is entitled to NMW?
You must be working and of school leaving age (last Friday in June of the school year they turn 16) or over to get the minimum wage. You will need your National Insurance number before commencing work.
- People living and working in a religious community
- A student doing work experience as part of a higher or further education course
- Work shadowing
For more information on the NMW follow the link below: