On 14 March 2016, the Prime Minister announced national minimum wage increases to take effect on 1 October. The government has fully accepted the Low Pay Commission’s recommendations for this year. The following hourly rates of national minimum wage will apply from 1 October 2016:

The rate for workers aged 21 to 24 increases to £6.95.

The development rate (workers aged 18 to 20) increases to £5.55.

The young workers rate (non-apprentices aged under 18 but above compulsory school age) increases to £4.00.

The apprenticeship rate increases to £3.40.

Businesses should review their pay rates to ensure that they are aligned with these increased rates.

From 1 April 2016, the new national living wage for workers aged 25 and over came into force at a rate of £7.20 an hour, and did not change on 1 October. It has also been confirmed that all national minimum wage rates including the national living wage will be uprated in parallel from April 2017.

The content of this update is for information only and does not constitute legal advice. It states the law as at October 2016. We recommend that specific professional advice is obtained on any particular matter. We do not accept responsibility for any loss arising as a result of the use of the information contained in this update.