National Minimum Wage Increases

Date Added: 01 October 2011

The National Minimum Wage (NMW) increases for 2011/2012 will be introduced on 1^st October 2011, having been reviewed by the Low Pay Commission. The NMW is a minimum amount per hour that most workers in the United Kingdom are entitled to be paid by their employers. It makes no difference whether the worker works full or part time, is paid weekly or monthly, by cheque or cash. An individual will be a worker entitled to be paid the NMW, if they have a contract of employment. That contract does not have to be in writing, it can be oral or implied. Those workers excluded from the NMW include the self-employed, volunteers and individuals undertaking work experience.

NMW Rates from 1^st October 2011

The new rates are as follows:-

• the main rate for workers aged 21 and over will increase to £6.08 per hour
• the 18-20 rate will increase to £4.98 per hour
• the 16.17 rate for workers above school leaving age but under 18 will increase to £3.68 per hour
• the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60 per hour.

The NMW adult rate represents an increase of 2.5% from the 2010/2011 NMW adult rate, which stands at £5.93 per hour. More than 890,000 of the lowest paid workers are set to benefit from the new NMW rates. However, the 15p increase in the adult rate is still considerably less than the current rate of inflation.

If you are an employer and require further information or advice about what the new NMW increases mean for you, please contact Martin Stevens on mds@hallettandco.co.uk, Darren Thorneycroft on dct@hallettandco.co.uk, Marcus Self on ms@hallettandco.co.uk or telephone 01233 625 711.

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