The Low Pay Commission has welcomed the Government’s acceptance of its recommendations for the rates of the minimum wage affecting workers under 25 and apprentices to apply from 1 October 2016 – including:
- for 21-24 year olds, the rate will increase by 3.7% to £6.95 an hour (currently £6.70).
- 18-20 year olds, an increase of 4.7% to £5.55 an hour (currently £5.30).
- 16-17 year olds, an increase of 3.4% to £4.00 an hour (currently £3.87).
- an increase in the Apprentice Rate of 3% to £3.40 an hour (currently £3.30).
- For workers aged 25 and over, the Government is introducing the £7.20 National Living Wage – in effect a fifth minimum wage rate – from 1 April 2016 (see below).
If you are wondering what the implications of non-compliance are, the government has recently published a list of offenders who have been “named and shamed” in February 2016. The 92 companies named owed £1,873,712 in arrears collectively and have been investigated by HMRC.
National living wage
From 01 April 2016, the National Living Wage of £7.20 an hour for workers aged 25 and older applies. The minimum wage will still apply for workers aged 24 and under.
As an organisation you must be compliant with the above. If you need any advice relating to the National Minimum Wage or the National Living Wage please don’t hesitate to speak to your HR Advisor, contact FusionHR on 01924 827869 or email firstname.lastname@example.org.