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National Minimum Wage October 2016 New Rates

The National Minimum Wage rates went up on 1 October, we mentioned it earlier this year but we just wanted to remind you

£7.20 per hour – 25 yrs old and over (what has been called the National Living Wage)

£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 new national minimum wage rates of pay apply to pay reference periods that begin on or after the 1 October 2016 – employers are not expected to change pay rates mid way through a pay reference period.

Similarly if an employee has a birthday that puts them onto a higher pay rate, this is not effective from the date of their birthday but the first full pay reference period after their birthday.

From 2017 the National Minimum Wage rate changes are going to be applied in April not October so expect a further increase in April 2017.

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