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New National Minimum Wage (NMW) Rates - 2016

National Minimum Wage Increases from 1 October 2016

On 8 September 2016, the House of Lords approved the draft National Minimum Wage (Amendment) (No.2) Regulations 2016. The regulations were also considered on the same day by the House of Commons First Delegated Legislation Committee. Both debates included some discussion about minimum wage levels and enforcement strategy.

The regulations will amend regulation 4 of the National Minimum Wage Regulations 2015 to increase the various rates of the national minimum wage. 

These increases will apply from 1 October 2016 and the new NMW rates will be as follows:

25 £7.20 per hour (no rise)
21-24 yrs  £6.95 per hour
18-20 yrs  £5.30 per hour
16-17 yrs  £4.00 per hour
Apprentice Rate  £3.40 per hour (for apprentices aged 16 to 18 and those aged 19 or over who are in their first year)

And remember, following the decision by the ECJ that peripatetic workers' travel time to first and last customers of the day is "working time", Employers will need to take this into consideration when calculating an employee's overall hourly rate of pay. See more here:

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