Increase to National Minimum Wage

Increase to National Minimum Wage

New National Minimum Wage (NMW) rates will apply from 1st October 2015. The new hourly rates will be as follows:

Workers aged 21 and over: £6.70 (increased from £6.50)

Workers aged 18-20:         £5.30 (increased from £5.13)

Workers aged 16-17:         £3.87 (increased from £3.79)

Apprentices:                     £3.30* (increased from £2.73)

*This rate applies to apprentices aged 16 to 18 and those aged 19 or over during the first year of their apprenticeship. All other apprentices are entitled to the National Minimum Wage.

Employers are advised to review their payroll records for any employees who are paid at or close to the NMW to ensure that their wages will be above the minimum from 1st October, and increase any hourly rates where necessary.

Increased fines exist including a “name and shame policy” for employers who fail to pay the minimum wage, and can be as much as £20,000. If your business employs people who are paid at or around the NMW, we would recommend reviewing their hourly rates as a priority.

For further advice and assistance relating to the National Minimum Wage, please call us on 024 7623 1000

Askews Legal LLP -Coventry Solicitors.