National Minimum Wage increases on 1 October 2016

The National Minimum Wage will increase on 1 October 2016. These rates apply to pay reference periods beginning on or after that date:

• £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.

Employers should also be aware of the National Living Wage which was introduced on 1 April 2016 for all working people aged 25 and over, and is set at £7.20 per hour.

It is against the law for employers to pay workers less than the National Minimum Wage. If an employer doesn’t pay the correct rate, a worker can make a formal grievance.

A worker can also make a complaint to HMRC who will investigate. If HMRC find that an employer hasn’t paid at least the National Minimum Wage, they can send a notice of arrears plus a penalty. 

If you have any questions or would like a consultation on your own company’s employment practices, please call PCB Solicitors LLP’s Shrewsbury office on 01743 248148 and ask for Edmund Coxhead or Ryan Bickham, who would be delighted to help.