1 October: Changes to the national minimum wage
The main rate of the national minimum wage increases from £5.80 to £5.93 and the development rate from £4.83 to £4.92 on 1 October 2010. The rate for workers aged 16 and 17 increases from £3.57 to £3.64 and a new rate of £2.50 per hour is introduced for apprentices.
The age at which workers qualify for the main rate of the national minimum wage is reduced from 22 to 21. This means that the national minimum wage for a 21-year-old worker will rise from £4.83 (the development rate prior to 1 October 2010) to £5.93 (the main rate from 1 October 2010). Employers should check whether or not they have any employees in this age group who may be affected by the change. They should also remember to review the position of employees on maternity leave, who may be entitled to an increase in statutory maternity pay.
Also on 1 October 2010, the daily accommodation offset rises from £4.51 to £4.61. This is the amount that an employer that provides an employee with housing as part of his or her job can take into account for the purposes of a national minimum wage calculation.
- National minimum wage Visit HR & Compliance Centre's statutory rates service for details of the current rates.
New additions to the HR & Compliance Centre FAQs section cover the changes to the national minimum wage regime:
- Are employers required to pay apprentices the national minimum wage?
- How old must a worker be to qualify for the main rate of the national minimum wage?
- Can accommodation provided to employees be taken into account when calculating payment of the national minimum wage?
Also
National minimum wage: the basics The HR & Compliance Centre reference manual includes further information on workers' rights to be paid the national minimum wage.
Other questions answered in the HR & Compliance Centre FAQs section on the national minimum wage include:
- What rate of the national minimum wage is payable when 1 October 2010 falls within a worker's pay reference period?
- Does an employer need to provide evidence that it is meeting the requirements of the national minimum wage?
- Where sales people are employed on a commission-only basis, is their employer obliged to pay the national minimum wage if their commission over a period falls below this?
