Changes to new minimum wage rates


Alex Pearce, employment law solicitor, reminds us that the new minimum wage rate comes into effect today.

From 1st October 2016 the new minimum wage rate increase comes into effect. The increases now mean that those aged over 21 years will benefit from a 4% pay rise:

21-24 year olds increases from £6.70 to £6.95
18-20 year olds increases from £5.30 to £5.55
16-17 year olds increases from £3.87 to £4.00
Apprentice rate increases from £3.30 to £3.40

(From 25 years you are entitled to the national living wage. This did not change on 1 October)

‘New To work’ guidance

ACAS has also published new guidance for young people who are starting work for the first time, setting out what their rights and obligations are. The guidance provides essential advice on legal issues that young people may face at work, including special employment rights for 16 and 17 year olds, information on apprenticeships and the national minimum wage.

Read more here 

‘Managing People’ guidance

ACAS has published guidance for line managers to help run effective teams and make businesses more productive. Research has shown that the first tier of line management (front line managers, supervisors and team leaders) have the greatest influence on staff performance and engagement to their organisation. Having skilled and able managers is therefore critical to any organisation’s success.

Read more here

Employers’ duties in relation to pensions

Alterations have been made to an employer’s duties in relation to pensions. The Treasury had previously announced that it would push back the two phases of minimum contribution rate increases by six months to align with the tax year. The two transitional periods specified now expire on 5 April 2018 and 5 April 2019 respectively. The minimum contribution rates, expressed as a percentage of a jobholder’s qualifying earnings, are as follows:

 Employer minimum contributionTotal minimum contribution
Before 6 April 20181%2%
6 April 2018 – 5 April 20192%5%
6 April 2019 onwards3%8%



For advice on the national minimum wage or pension obligations or any other employment law matter, contact Alex Pearce in our Employment Law Team  on or call 01708 229444.  This article was written by Alex Pearce our Employment Law Associate at Pinney Talfourd Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. The law may have changed since this article was published. This article is based on the law as at September 2016.


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