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National Minimum Wage

13-09-2016

 
The National Minimum Wage is due to be increased on 1st October 2016 for all working people aged 21 - 24.
 
The current National Living Wage £7.20 for those over the age of 25 will continue to apply.

 
The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice.

The Government's National Living Wage was introduced on 1 April 2016 for all working people aged 25 and over, and is set at £7.20 per hour.
 
The current National Minimum Wage for those under the age of 25 still applies.

 

 Key Points:
 

  • Most workers over school leaving age will be entitled to receive the NMW.
  • The NMW /NLW rate is reviewed annually by the Low Pay Commission.
  • HM Revenue & Customs (HRMC) can take employers to court for not paying the NMW/NLW.
  • There are a number of exemptions to those who receive the NMW/NLW. These do not relate to the size of the business, sector, job or region.
  • The compulsory National Living Wage is the national rate set for people aged 25 and over


Rates of Pay
 
In October 2016 the new rates will be:
 
£6.95 per hour - 21-24 yrs old
 
£5.55 per hour 18 - 20 yrs old
 
£4 per hour - 16-17 yrs old
 
£3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
 
The rate will then change every April starting April 2017.

 

Minimum Wage and National Living Wage - an overview

 


 

 

 

 



 

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