National minimum wage increases

Workers earning the national minimum wage (NMW) have received a pay rise as of 1 October 2016.

270,000 workers aged 21 – 24 earning the NMW have seen their hourly wage rise by 25p an hour to £6.95.

Those working 35 hours a week will see their annual income rise by £450 a year.

Workers aged under 21 and apprentices will also see their minimum rate of pay raised.

The following rates now apply as of 1 October 2016:

Age From October 2016 Before October 2016
25 and over £7.20 £7.20
21-24 £6.95 £6.70
18-20 £5.55 £5.30
16-17 £4.00 £3.87
Apprentices* £3.40 £3.30

*Apprentices aged 16-18 and those aged 19 or over who are in their first year.

The wage rise follows the introduction of the national living wage (NLW) of £7.20 an hour for workers aged 25 and over from April 2016.

All workers are entitled to the NMW and NLW respectively. Employers who fail to pay the correct wage will be subjected to a penalty fine and may be named by the government.

Business Secretary Greg Clark, said:

“This will make a real difference to hard-working people up and down the country and means for the vast majority of workers, the National Minimum Wage is at its highest level in real terms.”

Talk to us today about the NMW.