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New NMW rates announced

The Government has today (17 March) announced increases in the National Minimum Wage rates from 1 October 2015.

The biggest increase is for apprentices, who will benefit from an increase of 57p to £3.30 an hour, but employees of all ages will benefit from an increase.

The current and new rates are set out below.

Age Current hourly NMW rate (up to 30 September 2015) New hourly NMW rate (from 1 October 2015)
21+ £6.50 £6.70
18-20 £5.13 £5.30
16-17 £3.79 £3.87
Apprentice* £2.73 £3.30

*aged 16-17 or over 19 and in their first year of apprenticeship

Remember, it is a criminal offence to not pay the NMW rate. In addition to workers being able to pursue unlawful deduction from wages, HMRC can also investigate employers, issue enforcement notices and impose fines of up to £10,000 for failing to pay the NMW rate. When the Small Business, Enterprise and Employment Bill is enacted, this will increase to fines of up to £20,000 in respect of each worker who has not been paid the NMW. HMRC also has – and exercises – the power to “name and shame” businesses who have failed to pay the NMW, such as here.

For more information about paying the NMW or any other employment queries, please contact our Head of Employment, Paul Ball on 0113 246 2312 or paulball@3volution.co.uk

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