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New rates for the National Minimum Wage from 1st October 2016

30th September 2016

Each year the Government announces the rates for the National Minimum Wage for the forthcoming year. As is customary, the change in the rates will take place with effect from the 1st October. There is of course the complication of the introduction of the National Living Wage to take into account this time round.

You may recall that the National Living Wage applies to workers aged 25 and over. For younger workers the National Minimum Wage rates will apply as usual.

The National Living Wage will not be increased, so in practice the new rates of the National Minimum Wage will be of major concern to younger workers and their employers.

The rates from the 1st October 2016 are as follows:-

21-24 year olds (currently £6.70 p/h) rate increases to £6.95 p/h

18-20 year olds (currently £5.30 p/h) rate increases to £5.55 p/h

16-17 year olds (currently £3.87 p/h) rate increases to £4.00 p/h

Apprentice rate (currently £3.30 p/h) rate increases to £3.40 p/h

The rate for workers aged 25 or over remains at £7.20 p/h.

We are sometimes asked why the different rates (ie lower rates for younger workers) are permitted as they appear to be discriminatory on the grounds of age. Well, they are discriminatory on the grounds of age, but the relevant legislation exempts the rates of the National Minimum Wage from the provisions of the law on age discrimination.

As the above changes take effect from the 1st October 2016 employers will need to ensure that they implement the new rates with effect from that date irrespective of the date that they carry out their payroll.

If you need any help or advice on this matter do not hesitate to contact us at Hallett Employment Law Services Ltd 

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