National Minimum Wage rates and National Living Wage

Wednesday, September 23 2015

The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid.

The following NMW rates increases come into effect from 1 October 2015:

The government will introduce a new mandatory National Living Wage (NLW) for workers aged 25 and above from April 2016. 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, representing an increase of in excess of £1,200 per annum in earnings for a full-time worker on the current NMW.

In addition to the above increases the supermarket chain Lidl has recently announced a minimum wage busting hike in pay for its UK staff of £8.20 per hour, or £9.35 per hour in London from October, which may yet cause a ripple effect through other retailers.

It is clear that the increase in minimum wage will impact on not only the retail sector, but also those in hospitality, as well as care providers and the farming community who may need to absorb such pressures through a reduction in profit, or if they are able to, by passing these costs on through small price rises.


Penalties may be levied on employers where HMRC believes 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

Latest News

Contact Us

If you have any questions, please do not hesitate to get in touch

About Us

Ryecroft Glenton, founded 1901, is an independent, award-winning firm of Chartered Accountants and strategic business advisers giving personalised support to every one of our clients.

Sign up to our Newsletter

Subscribe to our email newsletter for useful tips and valuable resources sent out every month.

Contact Info

Address: 32 Portland Terrace Newcastle upon Tyne. NE2 1QP

Telephone: 0191 281 1292

Fax: 0191 212 0075