Annual National Minimum Wage Rate Increases

The National Minimum Wage increase will take effect on 1 October 2015.

  • For workers who are aged 21 or over, from £6.50 to £6.70 per hour.
  • For workers who are aged 18 or over (but not yet 21), from £5.13 to £5.30 an hour.
  • For workers who are under the age of 18, from £3.79 to £3.87 an hour.   
  • For apprentices, from £2.73 to £3.30 an hour.

The National Minimum Wage is increased annually in October of each year following recommendations by the Low Pay Commission, an independent statutory body set up to monitor and evaluate the National Minimum Wage and make recommendations for change.

In July 2015 the Low Pay Commission also opened consultation in relation to the potential impact of the proposed National Living Wage.  Consultation will close in September 2015.

In the meantime, the new National Living Wage of £7.20 per hour is due to be introduced in April 2016 for workers who are 25 and above.

The National Living Wage will involve a potential pay rise for many workers but critics argue that thousands of jobs will be lost. 

In the meantime, a number of companies including Lidl, Ikea and Oliver Bonas have already introduced the Living Wage in a blaze of publicity.

Whilst some businesses champion the cause other organisations, charities and social enterprise are looking closely at the consequences and at how to retain services without increasing prices for the consumer. 

Posted on: 25/09/2015

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.

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