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New law: National minimum wage rates for 1 October 2016 announced

New national minimum wage rates for 1 October 2016 have been announced by the Government.

Legal Alert

This update was published in Legal Alert - April 2016

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

The new rates are:

  • The standard adult rate for workers aged 21 and over increases from £6.70 per hour to £6.95
  • The development rate for workers between 18 and 20 increases from £5.30 per hour to £5.55
  • The young workers rate for workers under 18 but over compulsory school age increases from £3.87 per hour to £4.00
  • The apprentice rate increases from £3.30 per hour to £3.40

The Low Pay Commission has recommended an increase from £5.35 to £6.00 in the accommodation offset limit for employees given free accommodation but this has not yet been enacted.

The national living wage of £7.20 per hour for employees aged 25 and over is in force from 1 April 2016, replacing the national minimum wage for that age group.

Operative date

  • Now

Recommendations

  • Employers can now budget and plan the necessary alterations to their systems to take account of the new rates from October

Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.

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