The National Minimum Wage (Amendment) Regulations 2016 are implemented on the 1st April 2016 and set a compulsory National Living Wage from that date. The National Living Wage replaces the National Minimum Wage for eligible workers aged 25 years and over and has initially been set at £7.20 per hour. This is planned to rise to £9.00 per hour by the year 2020.
The National Minimum Wage will apply to all workers aged between 18 and 24 years and, from April 2016, will be set at the following rates:
- £6.70 per hour for workers aged between 21 and 24 years
- £5.30 per hour for workers aged between 18 and 20 years
- £3.87 per hour for workers aged between 16 and 17 years
- £3.30 per hour for apprentices who are either under 19 OR over 19 or within the first year of their apprenticeship.
It is important that you comply with the new rates as employers can face criminal prosecution and unlimited fines for failing to pay at least the National Minimum Wage to eligible workers.
If you have any queries regarding the National Minimum Wage or any other people management matter, please contact me on 01733 711073 or at email@example.com.