Minimum Wage 2016 Update
The Minimum Wage 2016 Update is due on 1 October 2016.
The new rates from 1st October 2016 are as follows:-
- Adult Rate – 21 years and above £7.20p/hr
- Youth Development Rate – 18-20years £5.55p/hr
- 16-17year Old Rate £4.00p/hr
- Apprentice Rate £3.40p/hr
The HMRC have a calculator at www.gov.uk/minimum-wage-calculator-employers for employers to check that employees are being paid the National Minimum Wage, the National Living Wage and does not owe the employee wages from previous years.
Penalties for not applying the Minimum Wage have been increased to 200% of arrears owed to workers from 1 April 2016. The minimum penalty being restricted to £100 and the maximum penalty restricted to £20,000. HMRC may also name and shame employers where the employee is owed more than £100.