Reminding you of the minimum wage increase because any failure to correctly pay National
Minimum Wage (NMW) or National Living Wage (NLW), even because you didn’t know about an
increase, will break the law.
From the 1st October 2016, the National Minimum Wage rates will be increasing as below:
• 21 – 24 year olds – NMW will increase from £6.70 to £6.95 per hour
• 18 – 20 year olds – NMW will increase from £5.30 to £5.55 per hour
• Over compulsory school age but not yet 18 – NMW will increase from £3.87 to £4.00 per
hour
• Apprentice rate (for apprentices under the age of 19 or 19 and over but in the first year
of apprenticeship) – NMW will increase from £3.30 to £3.40 per hour
You may have noticed that the National Living Wage is not increasing in October.
As the NLW rate for those aged 25 and over was only introduced in April 2016 the current rate of £7.20 per
hour will continue to apply until April 2017. The quoted increase from next April is £7.60 per
hour but this has not yet been confirmed.
This may appear to be more of a problem because some staff’s wages will rise in October and some will
rise in April. However, from April 2017, the NMW and NLW will align and each annual increase
will take place in April from then on. This means it is likely that the NMW will increase in both
October 2016 and April 2017.
Quickpaye will keep you up to date with future NMW and NLW increases and
when these will take effect in the future.