23rd April 2010

INFORMATION
UPDATE

 Issue No.  2010/13

 Sentient
              

 

INFORMATION UPDATE 

NATIONAL MINIMUM WAGE
 
New National Minimum Wage (NMW) rates have been announced that come into effect from 1st October 2010.  The rates will be as follows:
 
Key Note:- Apart from the increased rates, the age at which the top rate applies will decrease from 22 to 21 years old.
 
Rates:
 
 
Age Band
Hourly Rate
New:                           
aged 21 and above      
£5.93
Previous:
aged 22 and above
£5.80
                                   
New:
aged 18 to 20 (inc)
£4.92
Previous:                     
aged 18 to 21 (inc)
£4.83
                       
New:   
aged 16 and 17
£3.64
Previous:                     
aged 16 and 17
£3.57

Training Rate:

(Paid for the first 6 months of employment to those aged 22 and over and for whom you are providing accredited training)

New:   
£4.92
Previous:
£4.83

Apprentices  
Key Note:- Apprentices under the age of 19 or aged 19 and still in their first year of training will from 1st October 2010 be included into the Regulated rates for the first time.
 
New:   
£2.50

Previous:
Whilst exempt from National Minimum Wage as noted above, in England the Learning Skills Council made it a contractual requirement for training providers to pay minimum earning levels for employed apprentices. The minimum current full-time weekly rate is £95.00.

The change from a weekly to an hourly rate could mean some apprentices being better or worse off depending on the hours they work.  Consequently, the Low Pay Commission has recommended that in England transitional arrangements are put in place so that current Apprentices retain a contractual entitlement to a minimum of £95.00 a week for the remainder of their apprenticeship or until they are entitled to the National Minimum Wage.
 
The formal Statutory Instrument governing the above is expected near to the implementation date and if any late changes are set out we will cover them in a further update.

 

 

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