National Minimum Wage Rates

Chris Parkin

THE NATIONAL MINIMUM WAGE

The national minimum wage is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace. It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay. The rates set are based on the recommendations of the independent Low Pay Commission.

From October 2011 the new rates will be:

he adult rate of the National Minimum Wage (NMW) increases to £6.08 (£5.93) an hour from 1 October 2011. This is payable to those age 21 and over.

The rate for those aged 18 to 20 increases to £4.98 (£4.92) and for 16 and 17 year olds to £3.68 (£3.64) an hour.

The apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship, increases to £2.60 (£2.50) and hour..

National Minimum Wage rates from October 2012

The government has accepted the Low Pay Commission's recommendations for National Minimum Wage rates from 1 October 2012.

From 1 October 2012:

    the adult minimum wage rate will increase from £6.08 to £6.19 an hour
    the youth development rate will remain at £4.98 an hour
    the 16-17 year old rate will remain at £3.68 an hour and
    the apprentice rate will increase from £2.60 to £2.65 an hour.

HOLIDAYS:
The minimum annual statutory entitlement to paid holidays is

from 4 weeks (20 days for a 5 day a week worker, including any bank holidays or days in lieu) to 4.8 weeks (24 days).
If you are currently giving less than 24 days, you'll need to advise your employees of their new entitlement ('casuals' are also entitled).

The Department for Business has issued standard contract wording with a ready reckoner to calculate entitlements and a set of frequently asked questions. You can access these here

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