Back to industry briefings


National Minimum Wage and National Living Wage


The National Minimum Wage (NMW) was introduced from 1st April 2009. Employers in the UK are obliged to pay the national minimum wage to its employees. There are different rates applicable to different age groups and for apprentices. In the Summer Budget 2015 the Chancellor additionally announced a new National Living Wage (NLW) for employees of 25 and above, to come into effect from 1st April 2016. The attached guidance gives the exact figures for mandatory wage increases and the dates that they come into force, as well as a more detailed overview of the NMW/NLW.


The Low Pay Commission has also published its 2016 Spring Report on the minimum wage. The core focus of the report centres on recommendations on the rates affecting workers under 25 and apprentices, set to apply from 1 October 2016 (see above), as well as the underlying evidence base, including extensive analysis of trends in growth, employment and pay. Implementation dates for all National Minimum Wage rates will take place in April beginning in 2017 (no longer October). The report also provides analysis of the National Living Wage, which comes into force on 1 April for workers aged 25 and over, and sets out their preliminary views on how they will approach making recommendations on its future path. The report can be found here.


Resources

» National Minimum Wage/National Living Wage Guidance