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National Minimum Wage (NMW)

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The NMW rates are as follows:

Age 21 and over 18-20 16 and 17 Apprentices*
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.

This Budget Report was prepared immediately after the Chancellor's Budget Statement based on official press releases and supporting documentation. The Budget proposals are subject to amendment before the Finance Act receives Royal Assent. This Report is for guidance only, and professional advice should be obtained before acting on any information contained herein. No responsibility can be accepted by the publishers or the distributors for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.