New Minimum Wage Rates

Employers are reminded that new National Minimum Wage (NMW) rates came into force on 1 October 2011.

The revised rates are as follows:

• The adult hourly rate of the NMW has increased from £5.93 to £6.08;
• The development rate (which covers workers aged 18-20 years) has increased from £4.92 to £4.98; and
• The rate for workers aged 16 and 17 has increased from £3.64 to £3.68.

The apprentice rate, for apprentices under 19 or those aged 19 or over and in the first year of their apprenticeship, has risen from £2.50 to £2.60 per hour.

From 1 October 2011, the accommodation offset rose from £4.61 per day to £4.73.

Following a recommendation from the Low Pay Commission, the Government has issued guidance for employers on the payment of the NMW for interns and those carrying out work experience. Whether or not someone is a worker and is therefore entitled to be paid the NMW depends on the arrangements in place. The guidance includes a new worker checklist and examples of case studies.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.