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New law: National Minimum Wage rates announced for October

The Government has announced new national minimum wage rates from 1 October 2016.

Legal Alert

This update was published in Legal Alert - October 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 Government introduced a new national living wage of £7.20 for workers aged 25 or over from 1 April 2016.

From 1 October 2016 there are new national minimum wage rates for other categories of worker as follows:

  • The rate for employees aged 21 and over increases to £6.95 per hour (previously £6.70).
  • The rate for employees aged 18 to 20 increases to £5.55 per hour (previously £5.30).
  • The rate for employees who are under 18 but above the compulsory school age (and not apprentices) increases to £4.00 per hour (previously £3.87).
  • The apprentice rate increases to £3.40 per hour (previously £3.30).
  • The accommodation offset increases to £6.00 per day (previously £5.35).

Operative date

  • 1 October 2016

Recommendations

  • Employers should budget and prepare for the new rates which come into effect from 1 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.