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New National Minimum Wage rates set to come into effect

30 Sep 2016

New National Minimum Wage (NMW) rates are set to come into force on 1 October.

Rates will increase by between 3% and 4.7% for individuals under the age of 25 and apprentices.

The NMW for 21 to 24-year-olds will increase from £6.70 to £6.95 an hour, whilst 18 to 20-year-olds will benefit from a new NMW rate of £5.55 an hour, up from the previous rate of £5.30.

For 16 to 17-year-olds, the NMW will rise from £3.87 to £4.00 an hour.

Meanwhile, the NMW rate for apprentices will increase from £3.30 to £3.40 per hour.

For those aged 25 and over, the Government’s National Living Wage (NLW) of £7.20 applies. 

NMW rates are reviewed annually. From April 2017, the Government intends to align the NMW cycle with that of the NLW. This means that any future NMW increases will occur in April of each year, instead of October.  

The Low Pay Commission (LPC) has been commissioned by the Government to make recommendations for the NMW and NLW rates for April 2017.