New law: National minimum wage rates for 1 October 2016 announced

Thursday 14th April 2016

New national minimum wage rates for 1 October 2016 have been announced by the Government.

 

The new rates are:

 

  • The standard adult rate for workers aged 21 and over increases from £6.70 per hour to £6.95
  • The development rate for workers between 18 and 20 increases from £5.30 per hour to £5.55
  • The young workers rate for workers under 18 but over compulsory school age increases from £3.87 per hour to £4.00
  • The apprentice rate increases from £3.30 per hour to £3.40

 

The Low Pay Commission has recommended an increase from £5.35 to £6.00 in the accommodation offset limit for employees given free accommodation but this has not yet been enacted.

 

The national living wage of £7.20 per hour for employees aged 25 and over is in force from 1 April 2016, replacing the national minimum wage for that age group.

 

Operative date

  • Now

 

Recommendation

  • Employers can now budget and plan the necessary alterations to their systems to take account of the new rates from October

 

© Atom Content Marketing 2016

Author: Lisa Clark

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