The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. NMW rates increases come into effect on 1 October 2015. From 1 October 2015: the adult rate will increase by 20 pence to £6.70 per hour the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour the apprentice rate will increase by 57 pence to £3.30 per hour. Employers also need to be aware that from April 2016, the government will introduce a new mandatory National Living Wage (NLW) for workers aged 25 and above. This will initially be set at £7.20 which is a 50p increase in the adult rate of NMW coming into force in October 2015. This represents an increase of in excess of £1,200 per annum in earnings for a full-time worker on the current NMW. The NMW will continue to apply for those aged under 25. The government has issued further details of the new NLW policy. Penalties Penalties may be levied on employers where HMRC believe underpayments have occurred and HMRC may 'name and shame' non-compliant employers. Please contact us if you would like help with payroll issues. Internet links: Press release NLW policy