We provide Legal & HR advice to protect and support your business.

2 minutes reading time (356 words)

Minimum Wage Increases for Under 25s this October!

Minimum Wage Increases for Under 25s this October!

From the 1st October 2016, the National Minimum Wage will rise for workers under the age of 25. The changes, which are in line with the recommendations of the Low Pay Commission’s Report from earlier this year, will increase as follows:

  • Workers between the ages of 21 and 24 – From £6.70 per hour to £6.95 per hour
  • Workers between the ages of 18 and 20 – From £5.30 per hour to £5.55 per hour
  • Workers between the ages of 16 and 17 – From £3.87 per hour to £4.00 per hour
  • Apprentices – From £3.30 per hour to £3.40 per hour

The higher increase in the minimum wage for workers on the ‘adult rate’, meaning those aged between 21 and 24 is due to a “rapid recent improvement in unemployment rates” and pay growth faster than those aged 25 and above. However, the Low Pay Commission have not recommended that the Government extends the National Living Wage to all workers above the age of 21 rather than just those over 25 because, despite improvements, “unemployment rates for 21-24 year olds are twice as high as those for 25-30 year olds”. Therefore, significantly increasing the wages of this group could prevent further job growth.

Workers aged 25 and above will continue to receive the higher ‘National Living Wage’ which was introduced in April of this year and it will remain unchanged at £7.20. The Government’s target is to increase this higher rate to more than £9 per hour by 2020. However, this target had faced criticism following the Brexit vote, with concerns raised about its affordability in what may be a turbulent economic landscape. The British Chamber of Commerce (BCC) claimed the targets were “politically driven” and would hit smaller businesses hardest.

If you think you’re not being paid properly or have a wage that works out less than the minimum wage, contact us on 0808 1151 040 to book a free telephone consultation. Alternatively, email info@klglaw.co.uk and we’ll respond within 24 hours. 

If you are a business owner and require advice on how these changes may affect you, please call us on 0808 1151 040.

More Action Needed to Close Gender Pay Gap
Reforms to Public Sector Exit Payments

Call us 0800 8321554

Make an enquiry

Contact Kalra Legal Group

Please let us know your name.
Invalid Input
Please let us know your email address.
Please write a subject for your message.
Invalid Input
Please let us know your message.

What our clients say

“I am extremely grateful for the support I received from Anita during a very difficult time with a previous employer. It felt I was in a battle, but someone else was fighting that battle for me. Anita had my best interest at heart all the way, I really cannot praise her enough.”

R.B – Director at Software company

“I cannot thank you enough for all your efforts over the last 6 months working with our company to ensure we have taken all the necessary steps to protect our business and treat all our female staff equally.”

A.B - Managing Director of a Software Company

Contact us

Head Office
Suite 4, Ground Floor
Braywick House West, Windsor Road,
SL6 1DN 

4th Floor
86-90 Paul Street

Tel: 08008321554
Email: info@klglaw.co.uk

This website uses cookies to improve functionality and performance. By continuing to browse the site you are agreeing to our use of cookies.