New National Minimum Wage rates announced
The Government has accepted recommendations from the Low Pay Commission (LPC) on the new rates for the National Minimum Wage, which will come into force on 1 October 2010. The new hourly rates will be:
- £5.93 for workers aged 21 and over (a 2.2% increase on the current £5.80 rate);
- £4.92 for 18-20 year olds (a 1.9% increase on the current £4.83 rate); and
- £3.64 for 16-17 year olds (a 2% increase on the current £3.57 rate.
(Young people under the compulsory school age are not entitled to the National Minimum Wage.)
The Government also announced that it had accepted the LPC's recommendation to introduce an apprentice minimum wage of £2.50 per hour. The new rate will apply to apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.
In addition, the Government agreed to the Low Pay Commission's call for HM Revenue and Customs to investigate whether contract and agency cleaners in the hotel sector are receiving their entitlement under the National Minimum Wage for their hours worked.
The National Minimum Wage may not take people's income above the poverty line in London, which is why Trust for London is supporting a campaign to promote a Living Wage for London and is itself a living wage employer.
Find out more about low pay in London
Posted on 29 March 2010
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