From October 2016 the National Minimum Wage is set to increase by an average of 20 pence per hour. But note that there will be no increase for the National Living Wage, which was introduced in April 2016.
To clarify the difference between the two pay rates, here is a brief description.
The National Minimum Wage is the minimum pay per hour that most employees are entitled to by law. The rate will depend on the employee’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.
Rates of pay
The rates from 1 October 2015 are:
- £6.70 for workers 21 and over
- £5.30 18-20 yrs
- £3.87 for 16-17 yrs, who are above school leaving age but under 18
- £3.30 for apprentices under 19 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 annually starting April 2017. If you require any help, contact the Business Garage team.