National Minimum Wage – The Second Budget 8 July 2015
National Minimum Wage (NMW)
The NMW rates are as follows:
|Age||21 and over||18-20||16 and 17||Apprentice rate*|
|From 1 October 2014||£6.50||£5.13||£3.79||£2.73|
|From 1 October 2015||£6.70||£5.30||£3.87||£3.30|
* Rate applies to apprentices under 19, or those 19 and over in the first year of apprenticeship.
With effect from 26 May 2015, the maximum financial penalty for employers who flout the NMW has increased to £20,000 per worker. This compares with a previous penalty of 100% of the total underpayment which was subject to a maximum of £20,000 per notice.
From April 2016 a new National Living Wage (NLW) in the form of a premium on top of the NMW will be introduced for workers aged 25 and above. Initially set at £7.20, it is expected to rise to over £9 by 2020.
Tags.Budget 2015, budget july 2015