National Minimum Wage and National Living Wage


From 1st October 2016, the National Minimum Wage rose by 3.7% to £6.95 for 21 to 24-year-olds, and by 4.7% to £5.55 an hour for those aged 18 to 20.

The minimum wage for 16 to 17-year-olds rose to £4.00 and apprentices under 19, or 19 or over who are in the first year of apprenticeship, will see their wages go up to £3.40.

The rates will then change every April starting in April 2017, not October as in previous years.

The Government’s National Living Wage, introduced on 1 April 2016 for all working people aged 25 and over, remains at £7.20 per hour.

From April 2016:

National Living Wage (25+): £7.20
21-24 yrs: £6.70
16-17 yrs: £5.30
Apprentice: £3.30

From October 2016 – April 2017:

National Living Wage (25+): £7.20
21-24 yrs: £6.95
16-17 yrs: £5.55
Apprentice: £3.40

Non-payment of the National Minimum Wage

It is against the law for employers to pay workers less than the National Minimum Wage or to falsify payment records.

With the introduction of the National Living Wage the penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days.

The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.
For advice on paying your staff, please contact us for further information and to discuss how we can assist you with the running of your PAYE Scheme.

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