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Government to increase minimum wage

This may not be the most exciting blog post (!) but it’s important news for many employers. The Government has announced the new minimum wage rates which will take effect on 1 October 2013:

  • The rate for workers age 21 and over (the standard adult rate) will be £6.31 an hour, up 12p from £6.19.
  • The rate for workers age 18 – 20 (the development rate) will be £5.03 an hour, up 5p from £4.98.
  • The rate for workers age 16 – 18 who are not apprentices (the young workers rate) will be £3.72 an hour, up 4p from £3.68.
  • The apprentice rate will be £2.68 an hour, up 3p from £2.65.

All the rate increases correspond to recommendations made by the Low Pay Commission, except for the apprentice rate, which the LPC had recommended should be remain frozen. This recommendation was made on the basis that there is evidence that a significant number of employers are not complying with the apprentice minimum wage rate. However, the Government considers apprenticeships to be an important element of a strong economy and decided to raise the rate in order to make apprenticeships more attractive to younger workers.

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