The National Minimum Wage increases from 1 October 2016
New rates of the National Minimum Wage (NMW)
Back in March 2016, the Government accepted the NMW increases suggested by the Low Pay Commission. The new rates below will come in place on 1 October 2016.
The National Living Wage which was introduced in April 2016 will remain in place and will not increase.
Prior to October 2016
October 2016 - April 2017
|National Living Wage (25+)||£7.20||£7.20||-|
|Adult rate (21-24)||£6.70||£6.95||3.7%|
|Youth Development rate (18-20)||£5.30||£5.55||4.7%|
|16-17 year old rate||£3.87||£4.00||3.4%|
Changes in the minimum wage calendar
Unlike in previous years, the new rates are set to last for six months only (from 1 October 2016 to 30 March 2017). The National Living Wage was introduced in April 2016 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 and changes for all will be announced in April of every year from April 2017 onwards. Accordingly, the Low Pay Commission has been asked to report in the Autumn 2016 on the level of all the rates to apply in April 2017 including the National Living Wage and new rates for the minimum wages.
For further information, please contact a member of our HR Solutions team or email your enquiry to us.