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National Minimum Wage to increase from October 1

Posted: September 2, 2015

Burgess Hodgson is reminding businesses that the national minimum wage (NMW) is set to increase from October 1.

The NMW will rise by 20p an hour to £6.70 for adults and by 17p to £5.30 an hour for 18-to-20-year-olds from that date. The NMW is a minimum amount per hour that most workers in the UK are entitled to be paid by law. It was first introduced in 1999 at £3.60 an hour for adults and the level is recommended each year by the Low Pay Commission. It doesn’t matter how small an employer is, they still have to pay the minimum wage, which depends on a worker’s age and whether or not they’re an apprentice.

The Government has also introduced package of measures to ensure hardworking people receive the pay they are entitled to: The measures include:

  • doubling the penalties for non-payment of the National Minimum Wage and the new National Living Wage
  • increasing the enforcement budget
  • setting up a new team in HMRC to take forward criminal prosecutions for those who deliberately do not comply
  • ensuring that anyone found guilty will be considered for disqualification from being a company director for up to 15 years

The increases are as below:

  • Adult rate for workers 21 and over: (from £6.50) to £6.70 per hour
  • 18 to 20 year olds: (from £5.13) to £5.30 per hour
  • 16 to 17 year olds: (from £3.79) to £3.87 per hour
  • Apprentices: (from £2.73) to £3.30 per hour

This means that the payrolls relating to work completed from October onwards should reflect these new rates. If you have any questions on this please do not hesitate to contact Burgess Hodgson at payroll@burgesshodgson.co.uk.