Increase in NMW rates
The Government has approved a rise in the National Minimum Wage rates which will come into effect on 1 October 2014:
- a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
- a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
- a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
- a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour.
The rise will take effect in October 2014, as Business Secretary Vince Cable has accepted in full the independent Low Pay Commission's recommendations for 2014, including plans for bigger increases in future than in recent years.
The Low Pay Commission (LPC) has said the rise, the first real terms cash increase since 2008, is manageable for employers and will support full employment.
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.'
Meanwhile HMRC have revealed some of the excuses given for not paying the NMW.
Internet links: Press release HMRC NMW excuses