From Thursday 1st October 2015 the Minimum Wage rates are set to rise. These rates apply to pay reference periods beginning on or after that date, and are increases on bands that are already in place. The biggest rise, of just under 21%, is the apprentice rate.
From April 2016 things are set to change with the introduction of The National Living Wage, which applies to working people over the age of 25. For those workers below the age of 25 the current National Minimum Wage will continue to apply, although the rates may change.
The National Living Wage should not be confused with the Living Wage, set independently by the Living Wage Foundation. The Living Wage is calculated based upon the cost of living in the UK. The National Living Wage, and National Minimum Wage, are set by the Government based upon recommendations from the Low Pay Commission.
National Minimum Wage 1st October 2015
|for Workers 21 and over
|for 18 – 20 year olds
|for 16 – 17 year olds
The Apprentice Rate is for apprentices under the age of 19, or 19 or over but in their first year.
The rates were first announced in March by the coalition government and more information can be found here. There are some exemptions to the minimum wage, such as self-employed workers, and further details can be found here.