National Minimum Wage rates for workers below the age of 25 increase from 1 October 2016.  Employers should make sure that payroll software has been updated to reflect the increases in October pay runs.

The main rate for workers 25 years old and over increased on 1 April 2016 in line with the National Living Wage and remains unchanged this time round.  From 2017 all rates will be harmonised to a 1 April increase.

The new rates are as follows:

For workers aged 21-24:  £6.95/hour (from £6.70)
For workers aged 18-20:  £5.55/hour (from £5.30)
For workers aged under 18 but above the compulsory school age who are not apprentices:  £4.00/hour (from £3.87)
For apprentices (*):  £3.40/hour (from £3.30)

(*) – 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 National Minimum Wage applicable to their age.

Recent negative publicity surrounding the failure of retail chain Sports Direct to pay the minimum wage in its warehouse shows how important it is to ensure that businesses comply with the rules.  If you have any questions on the National Minimum Wage, whether you are an employer or an employee, please contact a member of our Employment Law Team for help and advice.

Tel:      01245 893400

Or visit our offices at 17 Duke Street, Chelmsford, CM1 1JU

 The Backhouse Solicitors Team