left image

National Minimum Wage increases from 1st October 2016

As they do every year, the National Minimum Wage (NMW) rates will increase on 1st October 2016. If you run a business and employ staff, you need to be aware of the changes and introduce them in your first payroll period following the introduction. The Government regularly name and shame employers paying less than the minimum wage. Worse […]

As they do every year, the National Minimum Wage (NMW) rates will increase on 1st October 2016. If you run a business and employ staff, you need to be aware of the changes and introduce them in your first payroll period following the introduction.

The Government regularly name and shame employers paying less than the minimum wage. Worse still that the potential bad press for your business is the penalty for non-compliance – up to £20,000 per worker.

 

National Minimum Wage Rates from October 2016

From next month the new rates of NMW will be:

  • 21-24 year-olds – £6.95/hr (up from £6.70/hr)
  • 18-20 year-olds – £5.55/hr (up from £5.30/hr)
  • 16-17 year-olds – £4.00/hr (up from £3.87/hr)
  • Apprentices – £3.40/hr (up from £3.30/hr)

The recently introduced National Living Wage for workers aged 25 and over, remains at £7.20 per hour. The Low Pay Commission will be making a recommendation to Government in the Autumn on the rate which should apply from April 2017.

As well an increase in employees net pay, you’ll see an increase in your monthly PAYE bill. The overall cost increase to employ a full time worker aged between 21-24, will go up by around £590 extra per employee per year (£520 in gross wages and another £70 on Employers National Insurance Contributions).

 

Relevant Posts

Business Tips: Restaurants, cafes and catering
Business

Business Tips: Restaurants, cafes and catering

I read a post on Quora recently where someone asked what the essential traits of  successful restaurants were. Many current and former restaurant owners, chefs and investors offered their advice. There were a number of common themes, as you might expect – good food, good location, good customer service, good online reviews etc. But one […]

Continue Reading
Business Tips: Hairdressers & Hair Salons
Business

Business Tips: Hairdressers & Hair Salons

Self-employed hairdressers and salon owners have a lot more to do than just cut hair. Running a hairdressing business, like any business, involves a lot more than just being able to do the job. Running a business is another job on top of that. This article won’t give any tips on extensions, blow dries or up-styles (that’s […]

Continue Reading
Top 5 tips for getting your tech startup off the ground
Business

Top 5 tips for getting your tech startup off the ground

Tech startups are a personal passion of mine. I love the new. And I love to see fledgling businesses with an idea for something new going through the process of bringing that to market. For all the excitement that comes with discovering an new piece of kit or a new app and figuring out how to […]

Continue Reading
Things I’ve Learned Over The Last 12 Months
Business

Things I’ve Learned Over The Last 12 Months

  You learn a lot in the space of a year. Some information sticks with you. Some is more fleeting but still important. Some is just funny. Here’s my quick run down of things I’ve learned in the last 12 months.   There is an important 3rd step to making the most of efficiency savings […]

Continue Reading