Workers under the age of 25, including apprentices, will see an increase in their take home pay as the National Minimum Wage rates are set to rise. These new rates are effective from 1 October 2016 and so should be implemented in workers’ October pay packets.
Adult rate (21 to 24 years) increases to £6.95 an hour from the current rate of £6.70
Youth Development rate (18 to 20 years) increases to £5.55 an hour from the current rate of £5.30
The 16-17 year old rate increases to £4.00 an hour from the current rate of £3.87
Apprentice Rate increases to £3.40 an hour from the current rate of £3.30
For workers aged over 25, the National Living Wage rate of £7.20 applies – click here for more details.
“Employers should be used to the October increase in the National Minimum Wage. It’s important that they also have in place a system so that when younger workers turn 25, they move onto the National Living Wage.
“Penalties for failing to pay employees the correct rates of pay are set to double to 200% of arrears, with the overall maximum penalty of £20,000 per worker remaining unchanged – so it very much pays to get it right!
“From April 2017, the National Minimum Wage and National Living Wage will be uprated at the same time – we can expect details of the April rates from the Low Pay Commission later this year.”
Clayton & Brewill provides audit, tax and advisory services to individuals, owner managed businesses and SMEs across the Midlands, from its network of offices across the region in Nottingham, Long Eaton and Melton Mowbray.