National Minimum Wage rates increase on 1st October 2015 for all employees as follows:
|Band||New Hourly Rate||Previous rate||Percentage increase (approx)|
|Age 18 – 20||£5.30||£5.13||3%|
It’s good news for all Apprentices aged 16 – 18 and those aged 19+ in their first year, as they will benefit from the largest increase to their rate that we have seen over recent years. The apprentice rate is also the largest percentage increase across all bands at a 21% uplift over last years rates.
Failure to pay National Minimum Wage (NMW) can result in a fine of up to £20,000, so make sure you know when your employee’s birthdays are and that your systems are up to date. In January of this year there were 37 firms named and shamed for failing to pay NMW followed by a further 48 firms in March. The firms ranged from large known retailers to independent shops and small businesses – some of those affected blamed system failures meaning they were simply unaware of the employee’s age rather than anything deliberately untoward.
NMW is different to the National Living Wage (NLW) which will be coming into effect in April 2016 and entitle workers aged 25+ to £7.20 per hour.
As always I would recommend checking the official .gov site for all rates and upcoming changes at https://www.gov.uk/national-minimum-wage-rates