The new rates of the National Minimum Wage will come into force on 1 October 2016.
Employers will need to ensure that those responsible for payroll in their organisation are aware of the new rates before they take effect on 1 October 2016. In addition, employers should make sure any payroll software is updated to take account of these new rates.
The National Minimum Wage rates for all workers will increase from 1 October 2016.
The standard adult (minimum hour rate) for workers aged 21 to 24 will increase from £6.70 to £6.95. The minimum hourly rates for the categories including those aged up to 21 also see the following increases:
- Development Rate - Applicable to workers aged between 18 and 20 inclusive - £5.30 to £5.55
- Young Workers Rate - Applicable to workers under 18 years of age but above compulsory school age who are not apprentices - £3.87 to £4.00
- Apprenticeship Rate - Applicable to workers under 19 years of age or those aged 19 or over but in the first year of apprenticeship - £3.30 to £3.40
National Living Wage
There is no change to the hourly rate of £7.20 which came into force on 1 April 2016 for workers aged 25 and over.
Hannah Pryce comments: "These changes represent the usual increase in the minimum wage rates. However, they put extra financial pressure on employers this year who have already faced increased costs with the introduction of the National Living Wage in April."
If you require further assistance please contact a member of the team