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Minimum wage increases come into force


4 October 2016

New rates of pay for young adults come into force this week, and retailers nationwide are legally obliged to implement the new national minimum wage for all workers. Effective as of 1 October, the minimum pay per hour for all adults aged 21-24 is now £6.95 – an increase of 25p per hour in what is cited to be the “largest increase since 2008”.

The move is designed to bring rates of pay for young people more in line with the National Living Wage. Introduced in April this year, the National Living Wage of £7.20 per hour applies to all adults aged 25 and over who are not in their first year of an apprenticeship.

For retailers, the move represents an obligation to adjust pay scales for all young staff as of this week.

“No matter how large or small your business, it’s your obligation as an employer to ensure that all stay are paid correctly at the new rates,” says a spokesperson for the British Retail Consortium. “Failure to pay the correct rates will result in having to pay your workers back the money that they are owed immediately, and you may be subject to a penalty fee of £20,000 per worker, and your company could be named in public.”

Retailers can check rates for all staff and find out more about the changes on the Government website.




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