22 April 2016

National minimum wage rates for 1 October 2016 announced

New national minimum wage rates for 1 October 2016 have been announced by the Government.

The new rates are:

  • The standard adult rate for workers aged 21 and over increases from £6.70 per hour to £6.95
  • The development rate for workers between 18 and 20 increases from £5.30 per hour to £5.55
  • The young workers rate for workers under 18 but over compulsory school age increases from £3.87 per hour to £4.00
  • The apprentice rate increases from £3.30 per hour to £3.40

The Low Pay Commission has recommended an increase from £5.35 to £6.00 in the accommodation offset limit for employees given free accommodation but this has not yet been enacted.

The national living wage of £7.20 per hour for employees aged 25 and over is in force from 1 April 2016, replacing the national minimum wage for that age group.

Recommendation

Employers can now budget and plan the necessary alterations to their systems to take account of the new rates from October.