National Minimum Wage rates from October 2016

The usual annual National Minimum Wage increases have now been announced. The following hourly rates of National Minimum Wage will apply from 1 October 2016:

• The rate for workers aged 21 to 24: £6.95 (currently £6.70).
• The development rate (workers aged 18 to 20): £5.55 (currently £5.30).
• The young workers rate (non-apprentices aged under 18 but above compulsory school age): £4.00 (currently £3.87).
• The apprenticeship rate: £3.40 (currently £3.30).

As we previously reported, 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 that will not change on 1 October 2016.

It has also been confirmed that in future all National Minimum Wage rates, including the National Living Wage, will be uprated in parallel from April 2017.

If you would like to talk through a situation you are dealing with, or if you need advice on any aspect of employment law, please contact any member of the Pure Employment Law team (01243 836840 or [email protected]).

Please note that this update is not intended to be exhaustive or be a substitute for legal advice. The application of the law in this area will often depend upon the specific facts and you are advised to seek specific advice on any given scenario.