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Increase in National Minimum Wage Rates

The Government has announced that from October 1st 2009 there will be an increase in the National Minimum Wage (NMW) rates.

For workers aged 22 and over, the rate will increase from £5.73 to £5.80 an hour; the rate for those aged 18 to 21 will rise from £4.77 to £4.83 and for 16 and 17 year olds the rate will increase from £3.53 an hour to £3.57,  as advised by the Low Pay Commission (LPC) in their 2009 report. The Government also accepted an LPC proposal that the adult rate of the NMW should be extended to 21 year-olds. This will be implemented from October 2010.

The announcement is potentially good news for apprentices too, as the LPC has suggested a minimum wage should be set in place for trainees, a proposal the Government will respond to when it sets the LPC’s remit for 2010.

In addition, the LPC recommended that information should be made publicly available on employers who are not adhering the NMW legislation and Government strategies are being developed to support this.

It is also good news for waiters/waitresses. The Department for Business, Enterprise and Regulatory Reform has already announced that the NMW Regulations are to be changed so that tips and service charges can no longer be used to make up staff salaries to the minimum legal level. This change will take effect in October 2009.

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About Belinda Nnoka

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