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New minimum wage rates now in force

The latest increases to minimum wage rates have come into force today, in line with recommendations set out by the Low Pay Commission (LPC).

From Tuesday 1 October:

  • the adult rate increases to £6.31 an hour
  • the rate for 18-20 year olds increases to £5.03 an hour
  • the rate for 16-17 year olds increases to £3.72 an hour
  • the apprentice rate increases to £2.68 an hour.

According to the Department for Business, Innovation and Skills, more than 890,000 of the lowest-paid workers in Britain will benefit from the rate increases.

Business Secretary Vince Cable described the NMW as "a vital safety net in protecting the low paid" but warned that:

"...as signs of an economic recovery start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board."

"That is why in addition to their ongoing annual remit, I am asking them [the LPC] to extend their expertise to help the government and business understand how we can deal with the issue of low wages in the economy. In particular I have asked them to look at what economic conditions would be needed to allow the National Minimum Wage to rise in the future by more than current conditions allow."

We can help with payroll and compliance with the new NMW rates. Contact us to find out how.