National Minimum Wage and National Living Wage
From 1 April 2016, the new National Living Wage (NLW) will be introduced for workers aged 25 and above, in the form of a premium on top of the existing National Minimum Wage (NMW). Initially set at £7.20, the NLW is expected to rise to over £9 by 2020. A new NMW rate comes into effect on 1 October each year and will continue to apply for those aged under 25.
The table below shows the NMW and NLW rates applying from 1 April 2016.
|Apprentices*||16 and 17||18 - 20||21 - 24||25 and over|
|National Minimum Wage||£3.30||£3.87||£5.30||£6.70||-|
|National Living Wage||-||-||-||-||£7.20|
The Government has also announced an increase in the NMW from 1 October 2016 as follows:
|Apprentices*||16 and 17||18 - 20||21 - 24|
|National Minimum Wage||£3.40||£4.00||£5.55||£6.95|
*Rate applies to apprentices under 19, or those 19 and over in the first year of apprenticeship.
The NMW and NLW cycles will be aligned with effect from April 2017 so that both rates are amended in April each year.