From 1 October 2016, the National Minimum Wage hourly rates will be increasing:
- To £6.95 (from £6.70) for those aged between 21 and 24
- to £5.55 (from £5.30) for those aged 18 to 20
- to £4.00 (from £3.87) for workers under 18
- to £3.40 (from £3.30) for apprentices under 19, or over 19 but in the first year of their training
The National Living Wage of £7.20 per hour, which applies to those 25 years old and over, is unaffected, as its yearly reviews take place in April each year.
All employers must ensure that their workers receive the correct rate of pay. HMRC is responsible for enforcement and failure to pay may result in investigations, civil penalties and criminal prosecution. Since 2013, over 700 employers have also been “named and shamed” for failing to pay.