As of 1st October 2016, the following National Minimum Wage rates will apply:
- For workers aged 21-24 years old, NMW will increase from £6.70 to £6.95 per hour
- For workers aged 18-20 years old, NMW will increase from £5.30 to £5.55 per hour
- For workers over compulsory school age but not yet 18, NMW will increase from £3.30 to £3.40 per hour
- The current rate of £7.20 per hour for workers aged 25 and over will continue to apply until April 2017For employers failing to pay the correct NMW or NLW rate, a claim of ‘not being aware’ of the new minimum is no protection from the financial penalties that can be imposed at a cost of £20,000 per worker.
- This means that some members of staff will receive a pay increase in October. However, from April 2017, the NMW and the NLW will be aligned, so the annual increase for both will subsequently take place in April every year.