14th May 2009

INFORMATION
UPDATE

 Issue No.  2009/11

 Sentient
              

 

  NEW NATIONAL MINIMUM WAGE ANNOUNCED

The Department for Business, Enterprise and Regulatory Reform (DBERR) has announced the new rates of the National Minimum Wage to apply from October 2009.
 
 
CURRENT RATE
NEW RATE
With Effect From
1st October 2009
For workers aged 22 and over
£5.73
£5.80
For workers aged 18 to 21
£4.77
£4.83
For workers aged 16 and 17
£3.53
£3.57
 
Given the current economic climate, Business groups had pushed for the minimum wage to remain at current levels. 
 
Future Changes to National Minimum Wage Provisions
 
Following a recommendation made by the Low Pay Commission, the Government has announced that with effect from October 2010, the adult rate will apply to 21-year-olds. In other-words the above groups will be amended as follows:
 
For workers aged
21 and over
For workers aged
18 to 20
For workers aged
16 and 17
 
Two further recommendations made by the Low Pay Commission are currently under consideration by Government:
 
1) there should be a minimum wage for apprentices, (and a response is expected in the summer);
 
and
 
2) that information on employers who have shown wilful disregard for minimum wage laws should be available.  The Government has given a commitment to develop this recommendation and is considering its practical implications.  Be ready for a name and shame approach.

 

 

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