National Minimum Wage Rates Have Risen from 1 October 2016

With effect from 1 October 2016, the National Minimum Wage (“NMW”) hourly rates have increased:

  • for those aged between 21 and 24 the NWM has increased to £6.95 (from £6.70)
  • for those aged 18 to 20 the NMW has increased to £5.55 (from £5.30)
  • for workers under 18 the NMW has increased to £4.00 (from £3.87)
  • for apprentices under 19, or over 19 but in the first year of their training the NMW has increased to £3.40 (from £3.30),

The National Living Wage of £7.20 per hour, which applies to those 25 years old and over, is unaffected. It is reviewed annually in April each year.

All employers must ensure that their workers receive the correct rate of pay. HMRC is responsible for enforcement and failure to pay may result in investigations, civil penalties and criminal prosecution.

Since 2013, over 700 employers have also been “named and shamed” for failing to pay.

If you have any questions arising from the change in National Minimum Wage, please get in touch with a member of our Employment team.