The National Minimum Wage will increase on 1 October 2016 in line with the Low Pay Commission’s recommendations.
Legislation in the form of the National Minimum Wage (Amendment) (No2) Regulations will increase the payments as follows:
Workers aged between 21 and under 25 – The hourly rate rises from £6.70 to £6.95
Workers aged between 18 and 21 – The hourly rate rises from £5.30 to £5.55
Workers aged 16 and 17 – The hourly rate rises from £3.87 to £4.00
The Apprentice hourly rate rises from £3.30 to £3.40
Remember that the National Minimum Wage rates are separate from the National Living Wage which is relevant to all workers aged 25 and over, and where the hourly rate is currently set at £7.20.
The Low pay Commission is yet to report on an increase in the National Living Wage for 2017. However the aim is to bring the National Living Wage level up to £9.00 per hour by 2020 and by the end of the current Parliament.
These measures must be implemented and it is recommended that all payroll systems are updated to ensure that there are no breaches of these Regulations. There are now greater powers to name and shame businesses who fail to pay these rates combined with more punitive enforcement measures.