4. Rights to pay and conditions 


The National Minimum Wage


Under the National Minimum Wage Act 1998, workers have the right to a minimum wage. 


National minimum wage rates are usually updated every October. However, this year, the regime changed, with the introduction of the government’s “national living wage” for workers aged 25 or older from 1 April 2016. Although called the “national living wage”, the change is simply an extra age tier added to the existing national minimum wage regime (The National Minimum Wage (Amendment) Regulations 2016). 


The current rates are set out below:


• £7.20 an hour for those aged 25 and older from 1 April 2016 (the “national living wage” rate);


• £6.70 an hour for those aged 21 to 24 (£6.95 an hour from 1 October 2016);


• £5.30 an hour for young people aged 18 to 20 — the “Youth Development Rate” — (£5.55 an hour from 1 October 2016); and


• £3.87 an hour for 16 and 17-year-olds (£4.00 an hour from 1 October 2016).


There is also a separate apprenticeship rate which applies to apprentices aged 16 to 18 and those aged 19 or over in their first year of apprenticeship. The current apprenticeship rate is £3.30 an hour (£3.40 an hour from 1 October 2016). For an employer to be allowed to pay the apprenticeship rate there must be a valid Apprenticeship Agreement in place (see Chapter 2 page 51: Apprentices). 


An employer providing accommodation can count some of its value towards minimum pay — currently up to £5.35 per day or £37.45 per week (£6.00 per day or £42 per week from 1 October 2016).


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