National Minimum and Living Wages will increase from April 2017.
Further funding has also been earmarked for HMRC to proactively compliance check higher risk employers.
The changes are as follows:
- Increase the living wage from £7.20 to £7.50 per hour
- increase the rate for 21 to 24 year olds from £6.95 to £7.05 per hour
- increase the rate for 18 to 20 year olds from £5.55 to £5.60 per hour
- increase the rate for 16 to 17 year olds from £4.00 to £4.05 per hour
- increase the rate for apprentices from £3.40 to £3.50 per hour
There will also be changes made to the way in which things like salary sacrifice schemes work but this will exclude things like pensions and childcare where no changes are envisaged.