New National Minimum Wage rates come into effect

The new rates for the National Minimum Wage (NMW) came into effect on 1 October.

The new rates are:

• £6.95 per hour – 21-24 years old
• £5.55 per hour – 18 – 20 years old
• £4.00 per hour – 16-17 years old
• £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

The National Living Wage for workers over the age of 25 remains at £7.20. It is due to change from 1 April next year.

Employers caught breaching the minimum rates have to pay the arrears within 14 days and face a penalty equal to 200% of the unpaid wages owed to workers (100% of the unpaid wages for pay periods which began before 1 April 2016) up to a maximum of £20,000 per worker.

The government also regularly publishes ‘name and shame’ lists of employers who fail to pay the NMW.

For more information about this article or any aspect of our employment services, please call Jeremy Garson on 020 8907 2000 or click here to email him and he will be delighted to help you (there is no charge for an initial telephone discussion).