Latest News

Updates from the Clayton & Brewill team.

New National Minimum Wage rates 01 October 2016

20th September, 2016

Employers need to be aware of the new national minimum wage for workers under 25 that will come into effect on 1 October.

Workers under the age of 25, including apprentices, will see an increase in their take home pay as the National Minimum Wage rates are set to rise. These new rates are effective from 1 October 2016 and so should be implemented in workers’ October pay packets.

New National Minimum Wage rates from 1 October

Adult rate (21 to 24 years) increases to £6.95 an hour from the current rate of £6.70

Youth Development rate (18 to 20 years) increases to £5.55 an hour from the current rate of £5.30

The 16-17 year old rate increases to £4.00 an hour from the current rate of £3.87

Apprentice Rate increases to £3.40 an hour from the current rate of £3.30

For workers aged over 25, the National Living Wage rate of £7.20 applies – click here for more details.

Image courtesy of the Low Pay Commission

Image courtesy of the Low Pay Commission

Julie Braithwaite, payroll specialist at Clayton & Brewill in Nottingham commented:

Julie Braithwaite Payroll Administrator Clayton & Brewill Nottingham“Employers should be used to the October increase in the National Minimum Wage. It’s important that they also have in place a system so that when younger workers turn 25, they move onto the National Living Wage.

“Penalties for failing to pay employees the correct rates of pay are set to double to 200% of arrears, with the overall maximum penalty of £20,000 per worker remaining unchanged – so it very much pays to get it right!

“From April 2017, the National Minimum Wage and National Living Wage will be uprated at the same time – we can expect details of the April rates from the Low Pay Commission later this year.”

For advice on planning for the new minimum wage rates or for help with your payroll, please get in touch with Clayton & Brewill. Call us on 0115 950 3044 or click here to email us.

Clayton & Brewill provides audit, tax and advisory services to individuals, owner managed businesses and SMEs across the Midlands, from its network of offices across the region in Nottingham, Long Eaton and Melton Mowbray.

Get in touch
We'd love to talk to you about how we can help. Please leave your details here and one of our team will get back to you as soon as possible.