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National Minimum Wage Update

Posted: 4th Oct 2016 by Clare Walker Payroll

National Minimum Wage Update

What is the National Minimum Wage and who does it apply to?

The national minimum wage is the minimum rate of pay per hour someone is entitled to by law and depends on age and if they’re an apprentice.

To be eligible to get the National Minimum Wage, the person has to be at least school leaving age and applies to any of the below:

  • part-time
  • casual labourers, for example someone hired for one day
  • agency workers
  • workers and homeworkers paid by the number of items they make
  • apprentices
  • trainees, workers on probation
  • disabled workers
  • agricultural workers
  • foreign workers
  • seafarers
  • offshore workers

National Minimum Wage Rates

From 1st October 2016, the following National Minimum Wage rates took effect:

  • For workers aged 21 to 24, the rate increased from £6.70 to £6.95
  • For workers aged 18 to 20, the rate increased from £5.30 to £5.55
  • For workers aged 16 and 17, the rate increased from £3.87 to £4.00
  • For apprentices under the age of 19 or those aged 19 and over who are in their first year of an apprenticeship, the rate increased from £3.30 to £3.40
  • Accommodation offset increased from £5.35 to £6.00

For workers aged 25 and over, the National Living Wage remains at £7.20 which the government introduced in April this year.

This means that around 270,000 workers aged 21 to 24 years have seen their hourly wage rise by 25p an hour to £6.95.

This is said to be the largest increase since 2008, outstripping average wage growth and inflation.

Important Note:

Unlike in previous years, these new rates are only set to last for six months. From 2017, increases to both the National Minimum Wage and the National Living Wage will take place in April.

What’s the difference between the National Minimum Wage and the National Living Wage?

Most workers are entitled to the National Minimum Wage by law but in April this year, the Government introduced the new National Living Wage.

This applies to workers aged 25 or over and not in the first year of an apprenticeship.

They are now legally entitled to at least £7.20 per hour.


How do I check if I’m getting the National Minimum Wage?

If you’d like to check whether your employer is paying you the minimum wage, the National Minimum Wage Calculator  can help you to work it out.

Contact us

For more information about the National Living Wage please contact or or call 01904 655202.

Image Source: acas