1st October 2016 – National Minimum Wage rates are changing

September 22nd, 2016  |  Published in Uncategorized

On 1st October 2016 the National Minimum Wage rates for the different age bands and for apprentices will increase. All employers need to make sure they are ready.

HMRC has investigated more than 70,000 employers and has the right to carry out checks at any time and ask to see payment records.

The minimum wage affecting workers under 25 and apprentices to apply from 1 October 2016 – including:
A new minimum wage for 21-24 year olds,  increasing by 3.7 per cent to £6.95 an hour.
An increase to the Youth Development Rate, affecting 18-20 year olds, of 4.7 per cent to £5.55 an hour.
An increase in the 16-17 Year Old Rate of 3.4 per cent to £4.00 an hour.
An increase in the Apprentice Rate of 3 per cent to £3.40 an hour.

For workers aged 25 and over, the Government is introducing the £7.20 National ‘Living Wage’ – in effect a fifth minimum wage rate – from 1 April 2016.


Unlike in previous years, the new rates are set to last for six months only (from 1 October 2016 to 30 March 2017). This reflects a change in the minimum wage calendar. The National Living Wage was introduced on a different cycle to the other rates – changing in April rather than October. Following a review, the Government has concluded that the rates for all workers should be aligned in April next year.


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