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Friday, September 30th, 2016

National Minimum Wage increase 1st October 2016

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice.

On 1st October 2016 the new rates will be:

  • £7.20 per hour - 25 yrs. old and over
  • £6.95 per hour - 21-24 yrs. old
  • £5.55 per hour 18-20 yrs. old
  • £4 per hour - 16-17 yrs. old
  • £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

The rate will then change every April starting April 2017.

The new pay rate will only affect someone's pay from the first full pay reference period after that date.

For example:

If the Pay Reference Period starts on the 19 March - 19 April- the pay between the 1 April - 18 April will be based on the NMW rates- The allocated pay from the 19 April - 19 May would be at the new NLW rate because this is the first full pay reference period after the 1 April.

The same rules apply when a monthly paid employee reaches the age of 25. For example, if the employee’s birthday falls on the 25 May and the next pay reference period starts on 10 June, the employee is entitled to receive the NLW pay rate on the 10 June and not their birthday.

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