What is the Minimum Wage for 16 Year Olds?

There’s a minimum wage for teenagers and an apprentice minimum wage for apprentices. There’s also an upper limit for workers of different ages and a lower limit for those under the minimum wage threshold. It takes work to determine minimum wage, especially when you’re still a teenager. But with the constant changes in minimum wage rates, keeping yourself updated is always safe. In this blog, we’ll tell you everything about what is the minimum wage for 16-year-olds and apprentices minimum wage.

We will also notify you of the minimum wage for 18-year-olds and how it varies from age to age.

What is the Minimum Wage?

• Minimum wage is the minimum amount of pay an employer is legally required to pay an employee.
• The current national minimum wage is £9.50 per hour for those aged 23 and over.
• Between 18 and 20, apprentices are entitled to a minimum hourly rate of £4.81 per hour.
• Workers under 18 are entitled to up to 70% of the national minimum wage, which is currently €7.91 per hour.
• This rate increases with age, reaching €9.15 per hour for those aged 25 and over.
• For those under 18, the minimum wage is even higher, with rates ranging from €6.75 to €8.45 per hour depending on age group and qualifications.
• There are also special minimum wage rates for specific categories of workers, such as students and people with disabilities.
• The national minimum wage and living wage rates from April 2023 are National living wage, 21-22-year-old rate, 18-20-year-old rate, 16-17 year-old rate, and apprentice rate.

What is Apprentice Minimum Wage?

Under the National Minimum Wage legislation, apprentices aged 16-18 and 19 are entitled to the minimum wage rate of £4.81 per hour in the first year of their apprenticeship.

These apprentices are required to undertake a minimum number of hours of training and work for a minimum period, with the minimum wage rate set at this level because of their less experience.

Those aged 21 in their first year of apprenticeship are entitled to a minimum hourly rate of £4.81, which is also calculated based on their less experience.

Those aged 19 and over who have completed their first year of apprenticeship are entitled to the national minimum wage for their age group, which ranges from £3.50 to £5.55 depending on age and qualifications.

This is calculated based on 40 hours or more per week and a minimum of 26 weeks per year, as well as additional factors such as school attendance and level of education attained by the apprentice.

When Does Minimum Wage Go Up?

• The national living wage rate is set to increase to £10.42 for workers aged 23 or over from 1 April 2023.
• This minimum wage rate applies to employees aged 25 and over living in England, Wales, Scotland, and Ireland.
• It’s currently set at £7.20 for those aged 21 to 24, £7.85 for those aged 18 to 20, and £7.37 for those aged 16 to 17 (as of April 2018). The minimum wage rates change every year on the 1st of April. They are adjusted according to the cost of living, taking into account both a worker’s age and whether they’re looking after a child or someone with a disability.
• From 1 July 2023, the national minimum wage will be lifted to $21.38 per hour, up 5.2 per cent from 2021. Over time, this will help reduce the gap between the money earned by a low-paid worker and that earned by a highly-paid one.
• For anyone under 18 working minimum wage rates, their employer must also pay them at least £4.02 an hour (as of October 2018).

How Much is Minimum Wage?

• The National Minimum Wage (NMW) rate is £4.81 per hour for apprentices, £6.83 per hour for 16-17-year-olds, £9.18 per hour for 18-20-year-olds, £9.50 per hour for those aged 21-22 years old, and £8.91 per hour for those aged 23 years or older.
• The European minimum wage is €11.30 per hour, but those under 18 are only legally entitled to 70% of the minimum wage, which is €7.91 per hour.
• Anyone working under 18 must be employed under a youth employment contract and paid at least 85% of the minimum wage rate for their age, as specified by national law.

What is the Minimum Wage for 16 Year Olds?

As of April 2022, the minimum wage for 16-year-olds is £4.62-an-hour. This rate applies to all small businesses and private limited companies across the UK. In addition, 16-year-olds are also entitled to the same National Minimum Wage as 17-year-olds. However, when 16-year-olds reach 18 years old, they are entitled to a more considerable National Minimum Wage rate.

This increases to £5.30-an-hour when they reach the age of 23 years. Finally, when they reach the age of 30 years, they are entitled to an enhanced minimum wage rate of £7.85-an-hour.

Minimum Wage for 18 Year Old

• The minimum wage rate for 18-year-olds is £6.83 per hour from April 2022 onwards.
• This applies to all 18-year-olds in the UK, regardless of sector or occupation.
• The living wage rate for 23-year-olds and above is £9.50 per hour.
• Higher-level apprentices are entitled to £4.81 per hour minimum wage.
• Apprentices aged 18 and over are entitled to the minimum wage rate of £4.20 per hour, the legal minimum wage rate for employees aged 16 to 17.
• Those earning minimum wage can claim income tax credits, national insurance contributions, and other benefits.

Conclusion

In addition, the minimum wage also helps employers and workers determine wage rates about living wage rates. It ensures that there is a minimum wage for all workers. You can always go through the blogs mentioned above for more information. There are several other blogs on minimum wage that you can also read!

FAQ – What is the Minimum Wage for 16 Year Olds?

Why is the Minimum Wage for a 16 Year Old So Low?

The minimum wage for 16-year-olds is set at a much lower rate than the national minimum wage rate. This is because:

• Anyone between 16 and 18 must be employed under a youth contract and paid at least 85% of the national minimum wage for their age (as specified by law).
• The national minimum wage applies to all workers, regardless of age or experience.

How Much Do You Get Paid at Mcdonald’s at 16?

At 16 years old, you are entitled to a National Minimum Wage of £4.62-an-hour. This wage is £0.75 (or £5.93 per week) above the minimum wage for ages 16-17, which is £4.35 per hour.

As for your hourly wage at Mcdonalds, the minimum wage for ages 16-17 is £4.35 per hour. However, the national living wage for this age group is set to rise in stages until it reaches £9.50 per hour by 2024. Currently, the national living wage for 16-year-olds is £7.87 per hour.

Do 16 Year Olds Pay Tax?

As a 16 year old, you are legally liable to pay income tax on wages earned. This means you may be required to pay taxes even if you’re not making extra money.

There is no universal exemption for 16-year-olds; however, in most countries, they are usually exempt from paying tax if their total annual income is below a certain threshold. The tax exemption amount will vary from country to country, ranging from nothing to almost half of their yearly income.

It’s important to remember that your local tax office can provide you with more information about your rights and responsibilities as a 16 year old taxpayer. By consulting with them early on, you’ll be well-equipped to handle any tax-related questions or concerns that may arise.

Can I Pay My Child to Work for Me?

Generally speaking, it is allowed to employ children aged 13 or more and pay them a tax-deductible salary from business benefits. However, children’s pay rates may vary depending on their age and experience. For example, minimum wage rates may be lower for those aged 16 or more who are undergoing training or working from home.

Parents must ensure that the amount of work done by their children justifies their salary. Furthermore, parents should always ensure their child is duly compensated for work. This includes ensuring that their living and working conditions are satisfactory and that the child is appropriately supervised.

Can a Child Earn Income?

Yes, children aged 13 or more can be employed and paid a salary in a business. Pay must be justified by the amount of work done in the company, and the National Minimum Wage applies to employees aged 16 or older.

A salary of up to £8,105 can be tax-free for a child under 16 with no other income. Employer’s National Insurance at 13.8% will be applied to salaries above £7,488 for those aged 16 or more, and wages above £7,605 will also give rise to employee’s National Insurance at 12%.

How Much Can I Pay My Child?

The minimum wage for 16 year olds is currently £7.20 per hour, which rises to £7.88 hourly in April 2018. However, parental responsibility must always be considered when setting pay rates for their children; the national minimum wage should not exceed what a teenager could make in an ordinary week working 40 hours.

What Hours Can You Work at 16?

In general, 16-year-olds can work a maximum of 8 hours per day, 40 hours per week. During school hours, 16-year-olds and 17-year-olds can work up to 4 hours on school days and 8 hours on non-school days for 48 hours each week. On Saturdays, 13-14 year olds can work for a maximum of 5 hours, and 15-16 year olds can work for a maximum of 8 hours. On Sundays, 12-17 year olds can work for 2 hours.

There is no minimum wage for workers under 16 years of age.

What Hours Can a 17 Year Old Work?

As long as a 17 year-old is registered with their local authority and working within the hours allowed by law, they can work 8 hours a day and 40 hours a week. These hours may be worked during school holidays (5 hours a day on weekends) up to 35 hours a week.

The minimum wage for a child under 16 years old is £3.68 an hour.