National Minimum Wage increases from 1 October 2016
The following hourly rates of National Minimum Wage (NMW) will apply from 1 October 2016:
- The rate for workers aged 21 to 24 will be £6.95.
- The development rate (workers aged 18 to 20) will be £5.55.
- The young workers rate (non-apprentices aged under 18 but above compulsory school age) will be £4.00.
There is also National Living Wage (NLW) which was introduced in April this year. It applies to workers aged 25 and over at a rate of £7.20 an hour. It has been reported that the Living Wage Commission state that the £7.20 is not enough for people to live on. Employer organisations, however, are likely to raise concerns about employers being able to meet any further rise in the NLW.
It is the Low Pay Commission that will make recommendations to government about what the rate of NLW will be in April 2017 and such recommendations are expected in October 2016.
If you have any queries about pay or other employment law topics, please contact Linda Wilson on 01730 268211 or