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Friday, 07 October 2016 15:59

Are you getting it right? Employer or Employee, YOU need to know about the National Minimum Wage changes

Its October, and that means one particular legal update for businesses to be aware of; changes to the National Minimum Wage. Are you paying your staff the correct wage in line with the National Minimum Wage?

For businesses and Employers, and I am sure Employees too, you are probably aware that there have been changes to the National Minimum Wage on the 1st October 2016. The National Minimum Wage has increased for all workers under twenty five, with the wage staying at £7.20 an hour and not increasing for workers aged twenty five and over. This being the current Living Wage implemented last year.

The new National Minimum Wages are as follows;

From 1st October 2016 

Age 25 and over - £7.20 

Age 21 to 24 - £6.95

Age 18 to 20 - £5.55

Age 16 to 17 - £4.00

Apprentices - £3.40

The government have also decided to amend the Minimum Wage Calendar, so these rates set on the 1st October 2016 for minimum wages will only be current until the 31st March 2017. Therefore, from April next year the National Minimum Wage and National Living Wage will be reviewed at that same time each year. 

The Low Pay Commission, an independent body who advise the government on the National Minimum Wage, have recently suggested that the National Living Wage will be £7.64 by April 2017. 

Further, the Low Pay Commission predict that by 2020 the National Living Wage will be over £9.00 an hour.

Whether you are an Employer or Employee, we can advise you on your employment issues. For Employees, we offer free general advice appointments on employment matters*. Contact the office today to make an appointment to receive city legal expertise, locally.

*Subject to Terms and Conditions


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