National minimum wage increase

Money

From 1 October the national minimum wage (NMW) increased for workers in all categories.

The increases are as follows:

  • For workers aged 21 or over but under 25 – a rise from £6.70 to £6.95 per hour.
  • For workers aged 18 or over but under 21 – a rise from £5.30 to £5.55 per hour.
  • For workers aged under 18 – a rise from £3.87 to £4 per hour.
  • The apprenticeship rate for workers within SI 2015/621, regs 5(1)(a), (b)  has risen from £3.30 to £3.40 per hour.

In addition, the amount applicable where any employer provides a worker with living accommodation has risen from £5.35 to £6.00 for each day that accommodation is provided.

Is your business accidentally paying below the minimum wage?

The employment status of staff such as apprentices, interns and directors can be uncertain, and employers must be careful not to accidentally underpay them.

As well as being publicly named and shamed by HM Revenue & Customs, employers that fail to pay their workers the national minimum wage could face fines of up to £20,000.

For expert advice on this or any area of employment law please email Paul Maynard or call him on 01323 435900. To learn about Paul’s skills and experience please view his website profile.

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