The National Minimum Wage is set to increase on 1st October, are you ready?
A wide range of evidence suggests that the National Minimum Wage (NMW) has been successful in raising pay for the lowest-paid workers significantly without damaging employment or the economy.
HM Revenue and Customs have recently investigated more than 700,000 employers and last year it identified £10.3 million in arrears of workers, with some big names including sports direct. If you don't comply with this legislation you can be set to pay a penalty 200% penalty of the arrears amount.
It's important to remember that the NMW does not take over from the National Living Wage. The National Living Wage is for workers above the age of 25, and will change in April of each year.
Announced by the Chancellor in the 2015 Summer Budget, the introduction of the National Living Wage (NLW) will be a potential game changer: the NLW is set at a higher rate of £7.20, increasing hourly pay by 7.5 per cent and 10.8 per cent year on year. The Government aspires to raise it to 60 per cent of by 2020 making it just over £9.
Below are the new rates of the NMW set to take affect in October.
National Living Wage (25+)
From April 2016: £7.20
1st October 2016 - April 2017: £7.20
Adult Rate (21-24)
From April 2016: £6.70
1st October 2016 - April 2017: £6.95
Young Adult (18-20)
From April 2016: £5.30
1st October 2016 - April 2017: £5.55
16-17 year old
From April 2016: £3.87
1st October 2016 - April 2017: £4.00
Apprentice Rate
From April 2016: £3.30
1st October 2016 - April 2017: £3.40
Source. gov.uk
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