New National Minimum Wage announced
2016
The Low Pay Commission has just published its 2016 Spring Report on the minimum wage. The core focus of the report is the recommendations on the rates affecting workers under 25 and apprentices to apply from 1 October 2016 (see below) and the underlying evidence base, including extensive analysis of trends in growth, employment and pay. The report also provides analysis of the National Living Wage, which came into force on 1 April for workers aged 25 and over, and sets out the preliminary views on how the commission will approach making recommendations on its future path. You can read the report here.
The Government is reported to have accepted the rate recommendations. It has also confirmed that it will be aligning the cycle of the National Minimum Wage and the National Living Wage from April 2017. This means that today’s recommendations will last 6 months rather than the usual 12.
| Current level | From April 2016 | From October 2016-April 2017 | Increase | ||
|---|---|---|---|---|---|
| Adult rate (21+) | £6.70 | National Living Wage (25+) | £7.20 | £7.20 | n/a |
| Adult rate (21-24) | £6.70 | £6.95 | 3.7% | ||
| Youth Development Rate (18-20) | £5.30 | £5.55 | 4.7% | ||
| 16-17 Year Old Rate | £3.87 | £4.00 | 3.4% | ||
| Apprentice Rate | £3.30
| £3.40 | 3% | ||