Minimum wage rates from 1 October 2016

There is no change to the minimum wage (National Living Wage) planned for people over 25 on 1 October 2016. But other categories of workers will see rises.
You must be at least school leaving age to get minimum wage rates. Minimum wage rates from 1 October 2016 are as follows:

  • Adults between the age of 21 and 24 will see their pay increased from £6.70 per hour to £6.95. (a 3.7% increase)
  • 18 – 20 year old’s will get a 4.7% rise from £5.30 per hour to £5.55
  • 16 – 17 year old’s will get £4.00 per hour, an increase of 3.4% from their current £3.87.
  • The apprentice rate will increase to £3.40 per hour.

It’s a criminal offence to not pay someone the National Minimum Wage or National Living Wage. As well as to fake payment records.

HMRC and The Minimum Wage

Employers who discover they’ve paid a worker below the correct minimum wage must pay any arrears immediately. Use the National Minimum Wage and National Living Wage calculator to work out arrears. HM Revenue and Customs (HMRC) officers have the right to carry out checks at any time. They can also ask to see payment records. They can also investigate employers if a worker complains to them.
If HMRC find that the employer hasn’t paid they will send them a notice for the arrears. They may receive a fine for not paying the minimum wage. HMRC can take them to court on behalf of the worker if the employer still refuses to pay.
It’s the employer’s responsibility to keep records proving that they are paying the minimum wage. Most employers use their payroll records as proof. All records have to be kept for 3 years.
The minimum wage is calculated differently for some types of workers .
Workers who have been dismissed for minimum wage disputes can claim unfair dismissal through the employment tribunal system.

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