Employment Law

New national minimum wage rates announced

The Government has confirmed that it has accepted the recommendations from the Low Pay Commission (LPC) on the new rates for the national minimum wage (NMW). The new rates, which will come into force on 1 October 2010, will be:

• £5.93 per hour for workers aged 21 and over (currently the adult rate applies to workers aged 22 and over but will be extended to include 21 year olds) – a 2.2% increase on the current £5.80 rate.
• £4.92 per hour for 18-20 year olds – a 1.9% increase on the current £4.83 rate.
• £3.64 per hour for 16 and 17 year olds – a 2% increase on the current £3.57 rate.

Additionally, the Government has announced that it has accepted the LPC’s recommendation to introduce a single apprentice minimum wage of £2.50 per hour for those currently exempt from the NMW. The new rate will apply to those apprentices who are under 19, or those aged 19 and over but in the first year of their apprenticeship.

Finally, the accommodation offset will rise from £4.51 per day to £4.61 per day.

If you would like to discuss the impact of these changes on your business please do not hesitate to contact me.