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New National Minimum Wage Rates

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New National Minimum Wage Rates


On 14 March 2016, David Cameron announced above inflation increases to the standard adult rate, apprenticeship rate and accommodation offset limit of the national minimum wage, to take effect from 1 October 2016. According to the Prime Minster, almost half a million young people will benefit from this increase.

The following hourly rates of national minimum wage will apply from 1 October 2016:

  • The National Minimum Wage for 21 to 24 year olds will rise by 3.7% to £6.95
  • 18 to 20 year olds will see their minimum wage rise by 4.7% to £5.55
  • The minimum wage for 16 to 17 year olds will rise by 3.4% to £4.00
  • Apprentices will also see their wage rise by 3% to £3.40

If we take 21 to 24 year olds on the minimum wage as an example, this means that they could see a pay rise worth an average of £450 per year. This increase will mean that for the first time, the National Minimum Wage rate for this age range will be restored to its highest level i.e. higher than its previous peak before the financial crisis.

From 1 April 2016, the new national living wage for workers aged 25 and over will also come into force at a rate of £7.20 an hour (equivalent to a pay rise of at least £900 a year) and this will not change on 1 October.



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