The new National Minimum Wage rates apply from 1 October 2016.  Details of new NMW rates on Gov.UK.  The new rates from 1 October 2016 are:

• 21 – 24 year olds – NMW will increase from £6.70 to £6.95 per hour
• 18 – 20 year olds – NMW will increase from £5.30 to £5.55 per hour
• Over compulsory school age but not yet 18 – NMW will increase from £3.87 to £4.00 per hour
• Apprentice rate (for apprentices under the age of 19 or 19 and over but in the first year of apprenticeship) – NMW will increase from £3.30 to £3.40 per hour

You may have noticed that the National Living Wage is not increasing in October. As the NLW rate for those aged 25 and over was only introduced in April 2016 the current rate of £7.20 per hour will continue to apply until April 2017. The quoted increase from next April is £7.60 per hour but this has not yet been confirmed.

Some staff’s wages will rise in October and some will rise in April.  However, from April 2017, the NMW and NLW will align and each annual increase will take place in April from then on. This means it is likely that the NMW will increase in both October 2016 and April 2017.

 

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.