02 Sep New national minimum wage rates from 1 October 2016
New hourly national minimum wage (NMW) rates come into effect on 1 October 2016
Employers are already legally required to pay eligible workers who are 25 or over the national living wage (NLW of £7.20 an hour)
Hourly NMW and NLW rates
Age From October 2016 Until October 2016
25 and over £7.20 £7.20
21-24 £6.95 £6.70
18-20 £5.55 £5.30
16-17 £4.00 £3.87
Apprentices* £3.40 £3.30
*Apprentices aged 16-18 and those aged 19 or over who are in their first year.
Calculating NMW and NLW
Working time includes:
- time at work and being required to work or being on standby near the workplace
- work-related travel (but not travelling between home and work)
- training or travelling to training.
The following payments should not affect NMW or NLW calculations:
- income tax and national insurance contributions
- advances on wages or loans
- repaying wage advances or loans
- repaying overpaid wages
- some accommodation
- penalties related to worker misconduct
- anything the worker paid for voluntarily or are not needed to do their job such as meals.
Items a worker buys for a job but isn’t refunded for (such as uniform or equipment) should not be included as part of the minimum wage.