3 May 2013

Increase in National Minimum Wage rates

The Government has announced increases in the NMW rates which will come into effect on 1 October 2013:

• the adult rate will increase by 12p to £6.31 an hour
  

• the rate for 18-20 year olds will increase by 5p to £5.03 an hour
  

• the rate for 16-17 year olds will increase by 4p to £3.72 an hour
  

• the apprentice rate will increase by 3p to £2.68 an hour and
  

• the accommodation offset increases from the current £4.82 to £4.91.
  

Katja Hall, CBI Chief Policy Director, said:

'Pay restraint has been crucial in creating jobs in this tough economic climate.'

'The LPC has struck a careful balance in setting the rates given sluggish growth, particularly in recommending a cautious approach to youth pay.'

'The LPC will need to monitor the impact of raising the adult rate very carefully. Given average earnings this year are already lower than expected, we must make sure the minimum wage doesn't limit jobs in key sectors, by outstripping pay across the rest of the workforce.'

'The law is clear that employers must pay apprentices the legal minimum wage. It is right that ministers tighten up compliance and enforcement.'

For advice please contact Sharon Hewitt Payroll Manager or Jeremy Gardner Partner.

Internet links: Press release CBI press release