New Minimum Wage Rates

The Government has announced that it has accepted the recommendations of the Low Pay Commission (LPC) on the rates for the National Minimum Wage (NMW) that will apply from 1 October 2012.

The revised rates are as follows:

  • The adult hourly rate of the NMW will increase from £6.08 to £6.19;
  • The development rate (which covers workers aged 18-20 years) will remain at £4.98; and
  • The rate for workers aged 16 and 17 will remain at £3.68.

The apprentice rate, for apprentices under 19 or those aged 19 or over and in the first year of their apprenticeship, will increase from £2.60 to £2.65 per hour.

From 1 October 2012, the accommodation offset will rise from £4.73 per day to £4.82.

Business Secretary Vince Cable said, “I believe that the recommendations of the LPC strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The LPC has done a good job in difficult circumstances.

“In these tough times freezing the youth rates has been a very hard decision - but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.”

The Government has also accepted a recommendation that in order to make operating the NMW as simple as possible for all users, it should put in place, and maintain, effective, clear and accessible guidance on all aspects of the NMW, particularly where there is significant evidence of ignorance or infringing practice. As a first step, the Government should undertake a review of all existing guidance.

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