National Minimum Wage
The Low Pay Commission’s (LPC) recommendations for increases in the National Minimum Wage (NMW) rates have been accepted by the government.
The new NMW rates will come into effect on 1 October 2014. The hourly rate of the NMW will increase to £6.50 (a rise of 19p) with effect from 1 October 2014 for adults aged 21 years and older.
The rate for apprentices under the age of 19 or in the first year of their apprenticeship will increase to £2.73 (a rise of 5p). The rates for 18-20 year olds will increase to £5.13 (a rise of 10p) and the rate for workers above the school leaving age but under 18 will increase to £3.79 (a rise of 7p).
Announcing the new rates, Business Secretary Vince Cable said:
‘The recommendations I have accepted today (12 March 2014) mean that low paid workers will enjoy the biggest cash increase in their take home pay since 2008. This will benefit over 1 million workers on National Minimum Wage and marks the start of a welcome new phase in minimum wage policy.’