National Minimum Wage Changes

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There are some legislative changes taking effect from 1st October 2016 affecting the National Minimum Wage. Here are all the basics to bring you up to speed.

What is it?

The National Minimum Wage (NMW) is the minimum amount of pay per hour that most employees are entitled to by law. The rate depends on age and if they are an apprentice.

What are the changes?

Effective from 1st October 2016 the new rates are:

  • £3.40 per hour for apprentices under 19 years old
  • £4.00 per hour – 16 to 17 years old
  • £5.55 per hour – 18 to 20 years old
  • £6.95 per hour – 21 to 24 years old
  • £7.20 per hour – 25 years and older

Starting from April 2017, these rates will then change annually every April.

You can find further information about the National Minimum Wage from:

National Minimum Wage

What do I need to do?

Now is a good time to:

  • Review the new NMW rates of pay (see above)
  • Check you know who is eligible in your organisation
  • Take the appropriate payroll action

Did you know that Sage 50 Payroll has an online legislation update option which will check for any new legislation and automatically update the legislation settings within your software?  You can find further information about this here:

Please note that, provided you have a valid SageCover contract or current subscription in place, Sage will make this legislation update available to you nearer the time, which you will be prompted to download.

Disclaimer: The information in this article was correct at time of publishing. Please note legislation is subject to change by HMRC.  Information sources used in this article include Sage Business Communities and the Government websites.

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