New law: National Minimum Wage rates announced for October

The Government has announced new national minimum wage rates from 1 October 2016.

The Government introduced a new national living wage of £7.20 for workers aged 25 or over from 1 April 2016.

From 1 October 2016 there are new national minimum wage rates for other categories of worker as follows:

  • The rate for employees aged 21 and over increases to £6.95 per hour (previously £6.70).
  • The rate for employees aged 18 to 20 increases to £5.55 per hour (previously £5.30).
  • The rate for employees who are under 18 but above the compulsory school age (and not apprentices) increases to £4.00 per hour (previously £3.87).
  • The apprentice rate increases to £3.40 per hour (previously £3.30).
  • The accommodation offset increases to £6.00 per day (previously £5.35).

Operative date

  • 1 October 2016

Recommendation

  • Employers should budget and prepare for the new rates which come into effect from 1 October

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