New National Minimum Wage Rates from 1 April 2016

Further to the Chancellor’s summer budget last year the National Minimum Wage (Amendment) Regulations 2016 will be introduced on 1st April.

They introduce a new National Living Wage for workers aged 25 and over, essentially enhancing National Minimum Wage Rates. Traditionally, the National Living Wage was calculated based on the amount an individual needs to earn in order to cover the basic costs of living. The amount was used as an informal benchmark and was not a legally enforceable minimum level of pay.

However, the new compulsory national living wage/minimum wage for workers aged 25+ from 1 April 2016 will be £7.20 per hour, an increase of 50p/hour. The minimum wage rates for those aged under 25 will remain the same:

  • National Living Wage   (For Workers aged 25+)                £7.20/hour
  • Standard Adult Rate    (For Workers aged 21-25)              £6.70/hour
  • Development Rate       (For workers aged 18-20)               £5.30/hour
  • Young Workers Rate   (For workers aged 16-17)                £3.87/hour
  • Apprenticeship Rate                                                                £3.30/hour

The regulations will also toughen the financial penalty for those employers that fail to pay the National Minimum Wage rates.

If you are unsure about how to apply the National Minimum Wage, or would like to discuss its implications for your business, please get in touch today for a free 30 minute consultation with one of our expert employment law solicitors.

Tel:                         01245 893400
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Web:                      www.backhouse-solicitors.co.uk