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National Minimum wage changes from 1st October 2015

Thu 24th Sep 2015
The National Minimum Wage (NMW) will increase from 1st October to £6.70 for workers aged 21 and over. Introduced in 1999, the National Minimum Wage acts sets a minimum hourly wage for workers across the UK.
National Minimum Wage rates 2015 (from 1 October)
21 and over £6.70
18 to 20 £5.30
Under 18 £3.87
Apprentice* £3.30
*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.
Key points
•The rate employees can demand depends upon the age of the worker.
•Workers over school leaving age should be entitled to claim the NMW.
•The rate is review annually, with changes to rates being implements in October each year.
•The NMW applies to all businesses regardless of their size.
•HM Revenue & Customs (HMRC) can take action against employers not paying the NMW.
National Living Wage
From April 2016 the national living wage will be implemented. The living wage will initially be set at £7.20 per hour, for workers aged 25 years or older. For workers under this age, the NMW will still apply.
The National Living Wage is different from the Living Wage, which is an hourly rate of pay set independently by the Living Wage Foundation and is calculated according to the basic cost of living in the UK. The Low Pay Commission recommends the level of the national minimum wage will also make recommendations for the future National Living Wage rate rises.
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