News - National Minimum Wage Increase

The draft National Minimum Wage (Amendment) Regulations 2017 (‘the regulations’) have been published as follows and they will come into effect from 1st April 2017:

• The National Living Wage for 25 year olds and over will increase by 30p from £7.20 to £7.50.
• The adult rate (21-24) will increase to £7.05 an hour which is 10p more than the current rate of £6.95.
• The Youth Development rate which affects 18-20-year-olds will increase to £5.60 per hour which is 5p more than the current rate of £5.55.
• The under 18-years-old rate will also see an increase up to £4.05 per hour which is 5p more than the current rate of £4.00.
• The Apprentice Rate will receive an increase to £3.50 per hour which is 10p more than the current rate of £3.40.

Comment

The Government is continuing to name and shame companies that have paid their staff below the national minimum and living wage, with more than 1,000 employers having been named for underpaying staff. In view of this and with the new regulations coming into force in the near future, employers should ensure they will comply with the requirements of the regulations and prepare now if they are not doing so already.

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