National Minimum Wage Increase


From Thursday, 1st October 2015, the adult National Minimum Wage (NMW) rate increases by 20 pence, from £6.50 to £6.70 per hour. The rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour, and for 16 to 17 year olds it will increase by 8 pence to £3.87 per hour.

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. It doesn’t matter how small an employer is, they still have to pay the minimum wage. It is designed to protect as many low-paid workers as possible and is set annually on the basis of the recommendations from the Low Pay Commission: an independent body of employers, unions and experts.

Workers must be of school leaving age (last Friday in June of the school year they turn 16) or over to get the minimum wage.

Apprentices are entitled to the apprentice rate if they’re either under 19 or over 19 and in the first year of their apprenticeship. Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the minimum wage rate for their age. The apprentice rate will also increase from 1st October 2015 by 57 pence to £3.30 per hour.

This is the largest increase in the NMW since 2007, and more than 1.4 million of Britain’s lowest-paid workers are set to benefit.

So, to summarise, these are the current rates to be used between 1st October 2015 and 30th September 2016:

21 and over              18 to 20                      Under 18                   Apprentice

£6.70                           £5.30                           £3.87                           £3.30

From April 2016, workers aged 25 and older should be paid the National Living Wage of £7.20 per hour, with the London Living Wage being £9.15 per hour for over those over 25 years old. However, the National Minimum Wage will still apply for workers aged 24 and under.

Please contact us if you would like further advice on paying your staff and/or running a PAYE Scheme.

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