On 1 October 2016, the National Minimum Wage (NMW) rates increased. These increases are designed to pull up wages in line with inflation.
There are no changes to the National Living Wage (NLW) – for workers aged 25 and over- which was introduced in April 2016, this remains at £7.20 per hour. However all other NMW hourly rates have increased as per the below:
- Workers rate for workers aged 21 – 24 is now £6.95 (up from £6.70)
- Development rate for workers aged 18-20 is now £5.55 (up from £5.30)
- Young workers rate for workers aged 16-17 is now £4.00 (up from £3.87)
- Apprentice rate for apprentices under 19, or over 19 in their first year of an apprenticeship, is now £3.40 (up from £3.30)
Unlike in previous years, the new NMW rates are set to last for only six months (from 1 October 2016 to 30 March 2017). The next NMW and NWL increases are then set to take place in April 2017, and annually each April thereafter.
NMW and NLW rates are compulsory, please make sure your company complies!
Full information can be found at https://www.gov.uk/national-minimum-wage-rates