National Minimum Wage
The new National Minimum Wage (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) 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).
The independent Low Pay Commission (LPC) was established following the National Minimum Wage Act 1998 to advise the Government on the NMW. It is made up of representatives from all sides of industry. The rates that come into effect mirror the recommendations made by the LPC which were accepted in full by the Government.