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Rise in National Minimum Wage

The Government announced yesterday (October 1) that the adult minimum wage rate has risen from £5.73 to £5.80 an hour.

The youth rate for those aged 18 to 21 has increased from £4.77 to £4.83. The Government has also said that the rate for workers aged 16-17 years would increase from £3.53 to £3.57.

It has also been announced that the main national minimum wage rate will be extended to apply to 21 year olds from October 2010. The main rate currently applies to workers aged 22 and over and 21 year olds come under the development rate.The National Minimum Wage was first introduced on 1 April 1999.

The main rate was set at £3.60 (for workers aged 22 and over) and £3.00 (workers aged 18-21 years old).

Commenting on the rise, Tom Hadley, the REC's Director of External Relations says;"The Government is also tightening up enforcement of the minimum wage with new measures, including:

A fairer way of dealing with national minimum wage arrears, calculated to ensure that employees do not lose out as a result of underpayment.
Tougher penalties for employers who break the law, increasing the maximum penalty for non-payment of the National Minimum Wage from £5,000 to an unlimited fine.
Serious cases of non-compliance will be tried in a Crown Court.

"The Government also said that it would draw up plans based on the LPC recommendation that employers who show 'wilful disregard for minimum wage laws' should be named and shamed."

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Rise in National Minimum Wage

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