National Minimum Wage Increase

30th September 2016


The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. NMW rates increases come into effect on 1 October 2016.

From 1 October 2016:

Employees aged 25 and over are of course subject to the National Living Wage (NLW) of £7.20 per hour.

From April 2017 the timing of the annual increase in the NMW and NLW will be aligned so the next increase in both rates will appril in April 2017 and then annual in April thereafter.

The NMW will continue to apply for those aged under 25.


Penalties may be levied on employers where HMRC believe underpayments have occurred and HMRC may ‘name and shame’ non-compliant employers.

Please contact us if you would like help with payroll issues.


Posted – 30/09/2016