Carter Jonas
Carter Jonas

National Minimum Wage from October 1

The National Minimum Wage (NMW) rates rose on October 1.

The National Living Wage (NLW), the minimum rate payable to employees aged 25 and over, will not increase from the current rate of £7.20 per hour.

But the Government intends to bring the review dates for the NLW and NMW into line from April 1, 2017. This means that the NMW rates shown below apply only for six months. They may change again on April 1, 2017, in line with a rise in the NLW.

• a 25p increase in the adult rate (from £6.70 to £6.95 per hour)
• a 25p increase in the rate for 18 to 20 year olds (from £5.30 to £5.55 per hour)
• a 13p increase in the rate for 16 to 17 year olds (from £3.87 to £4.00 per hour)
• a 10p increase in the rate for apprentices* (from £3.30 to £3.40 per hour)

*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.

As an agricultural sector employer you may offer accommodation as part of employment and this can be offset against the statutory minimum wage. There is a useful calculator at https://www.gov.uk/national-minimum-wage-accommodation and the daily amount changed from October 1.

It’s important to be aware of significant dates such as employee birthdays to ensure people are paid at or above the correct minimum wage for their age. There are also rules about rates for different types of work, such as piece work, and holiday pay entitlements. Further explanation can be found at: https://www.gov.uk/holiday-entitlement-rights

Employers with queries about the national minimum wage system should find the answers at: https://www.gov.uk/national-minimum-wage

There is a national minimum wage calculator at https://www.gov.uk/minimum-wage-calculator-employers

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, more than 700 employers have been “named and shamed” for failing to comply.