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New National Living Wage to be Introduced in April 2016

In the budget last month, the Government announced that, from April 2016, a new national living wage of £7.20 an hour for the over 25s will be introduced. This will rise to over £9 an hour by 2020.

For the time being, every employee must be paid at least:

  Current rate (effective from 1 October 2014) Future rate (effective from 1 October 2015)
Main (adult) rate (workers aged 21 and over) £6.50 per hour £6.70 per hour
Development rate (workers aged 18-20 inclusive) £5.13 per hour £5.30 per hour
Rate for workers aged 16-17 inclusive £3.79 per hour £3.87 per hour
Apprentice rate £2.73 per hour £3.30 per hour
Accommodation offset £5.08 per day £5.35 per day

The Government is proposing to streamline the number of minimum wage rates and have a single minimum wage rate for apprentices and 16-17 year-olds. This would see an apprentices' wage rise from £2.73 to £3.79 an hour and potentially make apprenticeships a more financially attractive route for young people.

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