Information on the National Minimum Wage Increase this October

Alan Price – CEO at BrightHR

September 22 2015

On 1st October 2015, the National Minimum Wage rates will increase. All hourly rates are subject to increase this year, and all employers must take action to ensure that all employees are receiving the applicable rate. The hourly increases will be as follows:
Band Current rate Rate from 1st October 2015
Age 21+ £6.50 £6.70
18 - 20 £5.13 £5.30
Over compulsory school age - 17 £3.79 £3.87
Apprentice rate £2.73 £3.30
Because the National Living Wage will be introduced in April 2016, it may be worth, while doing your assessment of October’s pay increases amongst your organisation, to do some preparation work for the National Living Wage. This will mean looking at all employees who are 25+, or who will have their 25th birthday between now and April 2016, and ensure they will receive an uplift to minimum £7.20 per hour from April 2016 if they do not already get paid at that rate. A consistent review will also be needed after April 2016 to see when workers reach the age of 25, as you currently do for workers who hit the next band up on their applicable birthdays. When they reach 25 years of age, the worker must receive a minimum £7.20 per hour. For further clarification on the National Minimum Wage, please contact our Advice Service on 0844 892 2772.

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