From 1st April 2019, the annual National Minimum wage increases took effect. Adult workers aged 25 and over will be entitled to £8.21. (National Living Wage).

There are also increases in the minimum wage payable to apprentices, which will increase £3.90 per hour for apprentices under 19 (or over 19 in their first year of apprenticeship. The youth rate for workers aged 16-17 is £4.35, £6.15 for those aged 18-20 and £7.70 for those aged 21-24.

These increases will have an impact on recruiters operating a PAYE arrangement, and umbrella companies.

Whether the increased costs are absorbed or passed on to hirers will depend upon both the contractual arrangement that are in place with the hirer, and the negotiating position of the recruitment companies.

A failure to comply with the national minimum wage can result in prosecution and fines as well as the repayment of any underpaid amounts to the worker and a requirement to account to HMRC should any tax or national insurance be due on such amounts.