Minimum wage increases

1 October 2015

The adult rate of the national minimum wage (NMW) is set to rise by 20p to £6.70 on 1 October 2015.

As well as the change to adult rate:

the apprentice rate increases by 57p to £3.30
the rate for 18 to 20 year olds will rise by 17p to £5.30
those aged 16-17 will now be paid £3.87, an increase of 8p
the accommodation offset will rise from £5.08 to £5.35.

Figures released in 2014 by the Low Pay Commission show that the hospitality, retail and cleaning sectors accounted for 52% of NMW jobs. Small businesses contained 37% of workers who were paid the NMW.

The increase is the largest real-terms rise since 2007, and the government estimates that 1.4 million workers stand to benefit.
John Allan, national chairman for the Federation of Small Businesses, said:

“As well as focusing on enforcement, the government must clearly and proactively communicate the change to employers – ensuring businesses fully understand what they need to do and when. This support and guidance is necessary so small businesses avoid inadvertently falling foul of the law.”

Preparing for a NMW rise

Businesses that are concerned about the effects of a rise in the NMW, can take the following steps:

use the government’s pay and work rights helpline or the ACAS online tools and guidance
reassess your outgoings and prices to balance the increase in your wage bill
join a relevant business body
review your payroll to ensure compliance and all of the employee information (especially ages) is correct.

Discuss your employer obligations with us today by calling 01206 512476 or click here to email your query.