National Minimum Wage Rates from October 2016

The National Minimum Wage is a compulsory wage and entitles the majority of UK workers to a minimum level of pay per hour, no matter the size of the organisation.

From October 2016, the National Minimum Wage rates will increase by 3.7% for workers aged 21-24, by 4.7% for those aged 18-20 and 3.5% for 16-17 year olds. The apprentice wage rate will also rise by 3%.

The new national minimum wage rates from 1st October are as follows:

Who? Wage Rate
21 – 24 years old £6.95
18 – 20 years old £5.55
16 – 17 years old £4.00
Apprentice* £3.40

*The apprentice wage rate applies to all apprentices aged 16 to 18 and those aged 19 or over that are in their first year of work. All other apprentices are entitled to the national minimum wage for their age.

National Living Wage

Introduced in April 2016, the National Living Wage is a compulsory wage for individuals over the age of 25. The living wage is calculated based on the basic cost of living in the UK.

So if you are working and aged 25 and over*, you are entitled to the National Living Wage currently set at £7.20 an hour.

*The National Living Wage does not apply to individuals in the first year of an apprenticeship.

If you have a question about the National Minimum Wage or the National Living Wage, please feel free to contact our team at payroll@chiene.co.uk.