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Posted 23 March 2015
by Stephen Jennings

The Budget 2015 – National Minimum Wage increase from 1 October 2015

This year there have been two interesting changes which directly relate to employment law.

The Government has accepted the Low Pay Commission’s report and recommendations that the NMW should increase again, except in respect of the rate for apprentices. The Government adopted a higher rate than the one which the Low Pay Commission recommended. Therefore, from the 1 October 2015, the NMW rates will be;

• £6.70 an hour for adults over the age of 21;
• £3.30 an hour for apprentices;
• £3.87 an hour for young workers, those under 18;
• £5.30 an hour, for those aged 18 – 20; and
• The accommodation offset limit will be £5.35 per day.

The second point is that national insurance contributions will be abolished for under 21 year olds from April 2015. In April 2016, NICs will be abolished for employing a young apprentice.

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About the author

Stephen Jennings

Partner

Partner in the litigation department specialising in employment law, he is the relationship manager for many of the firm's employment clients