£450 annual pay rise for minimum wage workers takes force

3 October 2016

Workers aged 21 to 24 on the national minimum wage will now receive 25p an hour more, setting their wage at £6.95 an hour. This translates to an extra £450 a year if you work for 35 hours a week.


Other minimum wage increases, which also took force from 1 October, include:

  • the rate for 18- to 20-year-olds will increase by 25p to £5.55 per hour;
  • the rate for 16- to 17-year-olds will increase by 13p to £4 per hour, and
  • the apprentice rate will increase by 10p to £3.40 per hour.


Business secretary Greg Clark says: “This will make a real difference to hard-working people up and down the country and means for the vast majority of workers, the National Minimum Wage is at its highest level in real terms.”

The rise in the minimum wage follows the introduction of the £7.20 ‘National Living Wage’ in April 2016 for those aged 25 years and over.


The government has also increased HMRC’s enforcement budget this year by £7 million, in a bid to improve its ability to crack down on employers who fail to pay staff properly.

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