Compulsory pay rises now in force
The National Living Wage (NLW) introduced on 1 April 2016 applies to all workers aged at least 25 and over, and is £7.20 per hour at present. The National Minimum Wage applies to those under 25 years of age. There are a few exemptions to those who receive the NMW or NLW, but almost all workers have to be paid at these levels.
The NMW and NLW rates are reviewed annually by the Low Pay Commission. The wage minimums which must legally be paid for work from 1 October 2016 are:
- £7.20 per hour – 25 years old and over
- £6.95 per hour – 21-24 years old
- £5.55 per hour 18-20 years old
- £4 per hour – 16-17 years old
- £3.40 for apprentices under 19 or 19 or over who are in their first year of apprenticeship.
Next year the change date will move from October to April, so 2017 increases will come into force in April 2017 and after that will be subject to change every April.