The National Living Wage (NLW) increased by 9.7% from 1 April, raising the hourly rate by 92p to £10.42 for workers aged 23 and over.

It means over two million low-paid, full-time workers will see a £1,600 annual earnings boost, as confirmed by the Government in last year’s Autumn Statement.

National Minimum Wage (NMW) rates for younger workers also increased earlier this month, as follows:

• 21–22-year-olds: 10.9% increase to £10.18 an hour (£1/hour extra)
• 18–20-year-olds: 9.7% increase to £7.49 an hour (66p/hour extra)
• 16–17-year-olds: 9.7% increase to £5.28 an hour (47p/hour extra)
• Apprentice rate increased by 9.7% to £5.28 an hour (47p/hour extra)
• Accommodation offset rate increased by 4.6% to £9.10 an hour (40p/hour extra). This is an allowable deduction from wages for employer-provided accommodation, applicable for each day of the week.

It’s illegal for any firms not to pay the minimum wage to employees, and as well as finding themselves open to claims in the employment tribunal, they can also be added to the Government’s name and shame list.

However, there are legitimate reasons why you still may not have seen the pay increase from the 1 April date, according to HR, employment law and health and safety service firm Croner.

Rachael Knappier, director of service at Croner lists these three exceptions:

1) Increased rates apply from the first pay reference period

Pay reference periods refer to the way someone is paid, for example weekly, every 10 days or every month.

Knappier explains: “The new rates may have come into effect on 1 April but it’s a common misconception that all employers must start paying them from then. Whilst this will be the case for those employers whose pay reference period starts on the first of the month, many employers will instead have pay reference periods starting later or at the end of the month. In these instances, the new rates don’t apply until that date.”

2) Different wage banding on your birthday

Knappier says: “National minimum wage bandings are set by age, so if an employee will be turning 18, 21 or 23, then their rate of pay will move to a higher banding. Firms don’t actually have to start paying the increased rate from the date of the employee’s birthday, however, but from the start of the pay reference period following their birthday, providing it doesn’t fall at the start of the new pay reference period.”

As an example, if the pay reference period starts on the 15th of each month and you turn 23 on the 25th March, you can continue to be paid £10.18 per hour (the rate for workers aged 21 and 22) until 15th April, at which point you would then be entitled to the National Living Wage which is £10.42 per hour.”

3) Apprentices beyond the first year

Knappier says: “All apprentices in the first year of their apprenticeship should be paid at least the apprentice national minimum wage, currently £5.28 per hour. After year one, apprentices aged 19 and over should get the national minimum wage for their age group. As such, at the beginning of year two, eligible apprentices should be paid the increased rate from the next pay reference period. For example, if year two begins on 1 September, but normal payroll runs from the 15th of each month, the new rate won’t take effect until 15th September.”