The draft National Minimum Wage (Amendment) Regulations 2017 (the “2017 Regulations”) have now been published and are set to come into force from 1 April 2017.
The National Minimum Wage rates are reviewed bi-annually and come into effect on 1 October and 1 April each year. They set the lowest rate that employers are legally required to pay their employees and are separate from the Living Wage which is a voluntary scheme indicating what wage employees need to live on. The current living wage rate is £9.15 in London and £7.85 for the rest of the UK.
The 2017 Regulations stipulate that the hourly rates will increase from 1 April 2017 as follows:
| Category | Rate for 1/10/2016-31/03/2017 | Rate from 1/04/2017-30/09/2017 |
| National living wage (aged 25+) | £7.20 | £7.50 |
| Standard adult rate (21-24) | £6.95 | £7.05 |
| Development Rate (18-20) | £5.55 | £5.60 |
| Young workers rate (under 18 but not apprentices) | £4.00 | £4.05 |
| Apprenticeship rate | £3.40 | £3.50 |
The accommodation offset will increase to £6.40 a day.
For more information on how the 2017 Regulations might affect you please contact the Devonshires Employment Team.
