National Minimum Wage Rates Rise

28 September 2016

New hourly national minimum wage (NMW) rates come into effect on 1st October 2016.

Employers are already legally required to pay eligible workers who are 25 and over the national living wage (NLW) of £7.20 an hour.

Hourly NMW and NLW Rates from 1 October 2016

Age             Rate

25 +            £7.20

21-24           £6.95

18-20           £5.55

16-17           £4.00

Apprentices   £3.40

Working time includes time at work, being on standby near the workplace, work-related travel, training or travelling to training.

Employers who find out they have paid below the correct wage should pay any arrears straightaway. If HMRC discovers any errors, the employer would pay a fine and be named by the government.

Employers need to keep proof that they have met their wage obligations for 3 years, such as a payroll record.

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