Employers warn of increase to National Minimum Wage

Local accountants and tax advisers, Trueman Brown, warn employers of the increase in the National Minimum Wage.

Warning to employers! – don’t forget that the National Minimum Wage (NMW) is increasing from 1st October 2016.

The new rates will be as follows: –

  • 21 – 24-year-olds – NMW will increase from £6.70 to £6.95 per hour.
  • 18 – 20-year-olds – NMW will increase from £5.30 to £5.55 per hour.
  • Over compulsory school age but not yet 18 – NMW will increase from £3.87 to £4.00 per hour.
  • Apprentice rate (for apprentices under the age of 19 or 19 and over but in the first year of apprenticeship) – NMW will increase from £3.30 to £3.40 per hour.

This will be the last occasion that the NMW will automatically change from 1st October of each tax year.

However, any change to the NMW will now be introduced from April of each tax year from April 2017 to align with the National Living Wage. Therefore, it is likely that there may be two increases to the NMW within six months.

Employers should keep up to date with any changes to the NMW.

Local accountants and tax advisers, Trueman Brown, deliver vital services to small business. Please contact us if you require assistance.