National Minimum Wage News

The National Minimum Wage (“NMW”) applies to workers aged under 25 and apprentices.

The Government has accepted recommendations from the Low Pay Commission for the new NMW rates that will apply from 1 October 2016.

The current NMW rates and new rates from 1 October 2016 are summarised below:

Age of employee Current NMW NMW from 1 October 2016
Workers aged 21 to 24 £6.70 per hour £6.95 per hour
Youth development rate for workers between 18 to 20 £5.30 per hour £5.55 per hour
Young worker rate for workers aged 16 to 17 £3.87 per hour £4.00 per hour
Apprentice rate £3.30 per hour £3.40 per hour

The ‘apprentice’ rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the minimum wage for their age.

The National Living Wage which came into force from 1 April 2016 entitles workers aged 25 and over at least £7.20 per hour. The National Living Wage is expected to remain unchanged until at least 1 April 2017.–2

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