New rates for national minimum wage
September 29, 2008
On 1st October, new rates for the national minimum wage will come into place. The National Minimum Wage legislation was introduced in April 1999 to stop workers being exploited by under-paying employers, and at the time there was a lot of criticism of the rule as people were worried that it would lead to job losses or wage drops for those earning higher than the minimum wage, however these fears did not materialise for the majority of places and the legislation is now accepted as part of employment practices.
The new rates for the national minimum wage from 1st October are as follows:
- Workers aged 22 and over: £5.73 per hour
- Workers aged 18-21: £4.77 per hour
- Workers aged 16-17: £3.53 per hour
The existing rates are £5.52, £4.60 and £3.40 respectively. Since the introduction of the legislation, the rates have gone up by around 60%. As well as increasing the rates, the Government also wants to crack down on rogue employers who do not pay the statutory rates, and there could be an unlimited fine for those failing to adhere to the legislation. According to a BBC report, ‘more than £27m in unpaid wages has been recovered on behalf of 80,000 workers since 1999’.
If you employ people on low salaries, don’t forget to check your annual salaries reflect the new rates for the national minimum wage.
Things to consider:great Annuity rates
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