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 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

What’s the difference between an Accountant and a Chartered Accountant
Accounting

What’s the difference between an Accountant and a Chartered Accountant

The term "accountant" isn't a protected term the way surgeon or dentist is. So what does that mean when you need to engage an accountant?

Continue Reading
Do I Need An Accountant?
Accounting

Do I Need An Accountant?

You don't need an accountant - in the same way that you don't need a baker. You can bake your own bread. But do you want to?

Continue Reading
The why.
Business

The why.

I’ve been working in accountancy for around 10 years now. I started out in 2008, qualified as an Accounting Technician in 2010 and then as a Chartered Accountant in 2013. I set up my own Practice in 2016. For the most part through that journey, my motivation was competitiveness. I wanted to be better than […]

Continue Reading