New National Minimum Wage Rates now in force

The National Living Wage came into force on 1 April 2016 at an hourly rate of £7.20.  This applies to employees who are aged 25 and over. Separately, to these rates, with effect from 1 October 2016, there has been an increase in the standard National Minimum Wage Rates as follows:-

• Standard adult rate (for employees aged 21 and over who are not entitled to the National Living Wage) – an increase from £6.70 per hour to £6.95 per hour

• Development rates (for employees aged between 18 and 20) – an increase from £5.30 per hour to £5.55 per hour

• Young worker’s rate (for employees aged between 16 and 17) – an increase from £3.87 per hour to £4.00 per hour

• Apprentice rate – an increase from £3.30 per hour to £3.40 per hour

The rates are likely to be reviewed again in advance of 1 April 2017, although no further announcement has been made in this respect.

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