31 October 2016

National Minimum Wage and Apprentice Rates Increase

The National Minimum Wage (NMW) and apprenticeship rates have increased as of 1 October 2016.

The compulsory National Living Wage (NLW), which covers workers who are 25 and over, remains unchanged at £7.20 an hour and will be revised in April 2017. National Minimum Wage rates change every October. The current rates are as follows:

Year 25 & Over 21 to 24 18 to 20 Under 18 Apprentice

October 2016 (current rate)

£7.20 (NLW) £6.95 £5.55 £4.00 £3.40

Apprentices who are under 19, or 19 and over and in the first year of their apprenticeship now earn £3.40 an hour.

For all workers the daily accommodation offset is £6.00 and is the one benefit-in-kind that can count towards the minimum wage. This is the maximum daily sum employers who provide accommodation can deduct towards those costs.

Further information on the NLW and NMW, including eligibility criteria, is available on the Government website. Build UK members can receive free employment advice by contacting the Croner Helpline on 0844 249 9874.