Minimum wage changes and calculations

A reminder that the government’s National Living Wage came into force from 1st April 2016, for all working people aged 25 and over, initially set at £7.20 per hour. The existing National Minimum Wage for those under the age of 25 continues to apply.

New rates for the NMW will, as usual, take effect from October. The rate for 21-24 age bracket goes to £6.95 per hour, 18 to 20 age to £5.55 an hour (up from £5.30) and for 16-17 year olds £4 an hour, up from £3.87.

Workplace experts Acas has a page about both the National Living Wage and the National Minimum Wage.

The Department for Business, Innovation and Skills has issued a new 55-page booklet on Calculating the Minimum Wage (pdf 684KB). It covers how to calculate the minimum wage, what counts as pay, what hours needs to be counted, and how this is enforced. There is also a section ‘Definition of volunteers for minimum wage purposes’. The publication uses ‘minimum wage’ as a collective term to refer to both the National Minimum Wage and National Living Wage.

(Latter from Daniel Barnett’s Employment Law List)

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