Wednesday, 15 September 2010

Changes to National Minimum Wage

From 1 October 2010 the national minimum wage rates will increase. They are summarised below:

Adult Rate (workers aged 21 & over) from £5.80 to £5.93 per hour
Development Rate for 18-20 year old, from £4.83 to £4.92 per hour
Development Rate for 16-17 year old, from £3.57 to £3.64 per hour

Please note that the adult minimum wage rate has been extended to include 21-year-olds from October 2010 so in effect the pay rate for employees who are 21 will increase from £4.83 to £5.93 per hour from this date.

Also a new minimum wage rate for apprentices of £2.50 per hour is being introduced from October 2010. The new rate will apply to:
• Apprentices under 19
• Apprentices aged 19 or over, but in the first year of their apprenticeship.


You will need to apply the new rates to all payments for work commenced on or after 1 October 2010 so please make sure that you are complying fully with the new rates.

Please refer to www.bis.gov.uk/policies/employment-matters/rights/nmw for further information.

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