National Minimum Wage - understanding the law and how it affects you

National Minimum Wage - understanding the law and how it affects you

Every year the Low Pay Commission reviews the national minimum wage rates and introduces any changes in October.

From the 1st of October 2015, the national minimum wage will increase.

Currently the rates are: 

  • £6.50 for workers aged 21 and over
  • £5.13 for workers aged 18-20
  • £3.79 for workers aged 16-17 who are above school leaving age but under 18
  • £2.73 for apprentices under 19 or 19 and over in your first year of apprenticeship.

From the 1st of October the rates will be: 

  • £6.70 for workers aged 21 and over
  • £5.30 for workers aged 18-20
  • £3.87 for workers aged 16-17 who are above school leaving age but under 18
  • £3.30 for apprentices under 19 or 19 and over in your first year of apprenticeship.

Failure to comply with the national minimum wage can result in employers being taken to court by HMRC and fines of up to £20,000.

From the 1st of April 2016, a compulsory living wage will be introduced for working people aged 25 and over of £7.20 per hour. The national minimum wage will still apply to workers under 25.

Fiona Taylor - Payroll Manager

Get in touch for a free Consultation Today

Find out more