Minimum Wage Increases from 1 October 2016
An update on the National Minimum Wage…
From 1 October 2016 the National Minimum Wage increase to the following:-
Aged 21 to 24 – £6.95 per hour
Aged 18 to 20 – £5.55 per hour
Under 18 years – £4.00 per hour
Apprentice – £3.40 per hour
All those aged 18 to 24, and in receipt of minimum wage, will see an increase of 25 pence per hour when the new legislation takes effect on 1 October 2016 with those under the age of 18 seeing a 13 pence increase. Apprentices will benefit from an extra 10 pence per hour following the introduction of the increases.
The National Minimum Wage for apprentices applies to those combining studying with practical training in a job and that are under the age of 19 but also includes apprentices that are over the age of 19 and in their first year of an apprenticeship.
Thus if you are aged 23 and in the first year of an apprenticeship you will only be entitled to £3.40 per hour, from 1 October 2016, and not £6.95 an hour which is what you would be entitled to an alternative minimum wage job that is not an apprenticeship. However, following completion of the first year of an apprenticeship; each apprentice is entitled to the National Minimum Wage for their age as long as they are over the age of 19, otherwise the apprentice rate will apply until they are over the age of 19.
The National Living Wage, introduced in April 2016, is applicable for all those over the age of 25 that are not in the first year of an apprenticeship. The current National Living Wage is £7.20 per hour and this will be reviewed each April with the next change being April 2017.
The National Living Wage is compulsory and currently set in The National Minimum Wage (Amendment) Regulations 2016 and is different from the ‘UK Living Wage’ and ‘London Living Wage’.
The ‘UK Living Wage’ and ‘London Living Wage’ is a voluntary scheme calculated by the Living Wage Foundation using the basic cost of living. This voluntary Living Wage is currently set at £8.25 for the UK and a higher rate of £9.40 in London, demonstrating a considerable difference to the National Minimum Wage rates.
By way of comparison; the previous National Minimum Wage rates, going back to 2011, are set out below along with the ‘UK Living Wage’ and ‘London Living Wage’:-nmw