National Minimum Wage Increase

The National Minimum Wage will increase from 1 October 2010.

The new hourly rates will be:

Standard rate (workers aged over 21) = £5.93 (rising from £5.80)

Workers aged between 18 and 20 = £4.92 (rising from £4.83)

Workers aged under 18 but above compulsory school age who are not apprentices = £3.64 (rising from £3.57)

There will be a new minimum wage for apprentices of £2.50 per hour for apprentices under 19 years of age or those aged 19 and over but in the first year of apprenticeship. 

As an employer, you will need to remember that you are prohibited from counting service charges, tips and gratuities towards National Minimum Wage.  For example, you cannot pay a worker of 24 £5.00 per hour but top this up with tips to ensure that they are being paid, or are being paid in excess of, the National Minimum Wage.

If you would like more information on employment law please contact Verity Slater on 01872 241700 or to email her click here.