Just two weeks after the October 2008 national minimum wage increases came into effect, attention is already turning to the 2009/2010 increase. And discussions surrounding the 2009/2010 national minimum wage increase could once more become heated.
UPDATES:
March 2010: National minimum wage 2010/2011: 2.2% increase to £5.93 per hour announced for October 2010
May 2009: New rates for October 2009 now announced
September 2009: What can we expect from the 2010/2011 national minimum wage increase?
1 October 2009: National minimum wage: increases for 2009/2010 effective today
The last two years of "cautious" increases (subscription required) in 2007 and 2008 have been accepted with a minimum of fuss by employers and unions.
But the present economic context of stagnating growth and elevated inflation is likely to result in divergent priorities when it comes to deciding the level of the October 2009 uprating (to span the remainder of 2009 and most of 2010), which the Low Pay Commission is scheduled to announce in the Spring.
The British Retail Consortium's (BRC) October 2008 submission (PDF format, 186K) (external website) to the Low Pay Commission on the 2009/2010 national minimum wage increase points to the tough trading conditions currently affecting the sector. Consequently, the BRC suggests that:
[F]uture increases should fall on the lower side of average earnings. For 2009 we believe this means an increase around 3%.
In contrast, a spokesman for shopworkers' union Usdaw interviewed for our recent overview of retail sector reward trends (subscription required) said that the union would push for the national minimum wage to be increased to more than £6 per hour in October 2009. This represents, by my calculations, an increase of at least 4.7% to the current adult statutory pay floor (subscription required) of £5.73 per hour.
UPDATE: The following links provide more detail on subsequent developments relating to the 2009/2010 national minimum wage increase:
- What can we expect from the 2010/2011 national minimum wage increase? Attention is already turning to what we can expect from the 2010/2011 increase, which will be implemented on 1 October 2010.
- National minimum wage 2009/2010: 1.2% increase to £5.80 per hour announced for October 2009 The Government has announced the national minimum wage rate for 2009/2010. With effect from 1 October 2009, the national minimum wage adult rate (paid to workers aged 22 and over) will rise from its current level of £5.73 per hour to £5.80 per hour, an increase of 1.2%.
- 2010 national minimum wage report to address interns' pay
- Low Pay Commission to consider national minimum wage for apprentices
- National minimum wage 2009/2010: TUC warns against minimum wage freeze The TUC is warning against a freeze in the national minimum wage, arguing that this would result in pay growth for low-paid workers falling behind that for the rest of the rest of the working population.
- National minimum wage 2009/2010: 0.7% rise to £5.77 per hour rumoured for October 2009 The Guardian reports that it is rumoured that the national minimum wage adult rate will increase to £5.77 per hour from 1 October 2009. This represents an increase of 4p per hour from the current national minimum wage of £5.73 per hour.
- National minimum wage 2009/2010: announcement expected "week beginning 11 May 2009" The announcement of the level at which the national minimum wage is to be set for 2009/2010 - coming into effect from 1 October 2009 - is now expected to be made during "the week beginning 11 May 2009". This is according to a representative of the Low Pay Commission (LPC) (external website), speaking to XpertHR on Friday 24 April 2009. It would consequently appear that a low or zero increase to the national minimum wage is ever more likely.
- 2009 national minimum wage increase decision delayed The government has announced that the reporting deadline for the Low Pay Commission's (LPC) recommendations on the October 2009 national minimum wage increase has been extended by two months, to 1 May 2009. This suggests that a low or zero 2009 national minimum wage increase is likely.
- BCC calls for national minimum wage freeze in 2009 The national minimum wage should not be increased at all come October 2009, according to the British Chambers of Commerce (BCC).
- TUC calls for £6.10 minimum wage In its submission to the LPC, the TUC has recommended that the national minimum wage from October 2009 should be at least £6.10, and says it should be increased to more than £6.50 from October 2010.
- National minimum wage enjoys broad support In the 10 years since its introduction, the national minimum wage has gained wide acceptance among employers, according to the latest IRS research on views of the national minimum wage.
- Does your organisation carry out an annual pay review in October? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.


Comments (33)
We need to do some zero-sum budgeting and look at our value proposition - to customers and employees.
I was served by a 16 year old at ten o'clock one night. He earned 3.40 an hour. That is as immoral as selling a mortgage to someone who can't pay it back.
This call my go beyond your purview.
I am interested in the wage curve. What system is typically used to describe the progression of wages in firms/industries? Assuming an X/Y graph with pay on the Y axis, how are levels on the X axis defined and what is the typical increase from level to level (by industry)?
Posted by Anonymous | October 15, 2008 7:57 AM
Posted on October 15, 2008 07:57
It should be set at least £6 from £2009 - if it increases again by 21p it will only be £5.94 which is pathetic, I think at least £6 - £6.10
Posted by Anonymous | November 14, 2008 10:52 PM
Posted on November 14, 2008 22:52
hello my name is stacey oshea, i am 19 years old and i am starting a new job in the equine industry as from jan 2009. i have been told my pay will be around £228 a week to brake it down i will be on £4.77 an hour could you tell me if this is the correct minimum wage or under for my age and the area which ill be working in and as i have many qualifications and experience in this department. as i feel from working a 48 hour week this is not enough money.
i will look forward to hearing from ur reasponce.
thanks x
Posted by miss s.oshea | December 28, 2008 5:40 PM
Posted on December 28, 2008 17:40
Hi Stacey
I'm pleased to be able to tell you that your new employer is planning to pay you the correct national minimum wage. From 1 October 2008, the national minimum wage development rate (for 18 to 21 year olds) rose to £4.77 per hour (see: http://www.xperthr.co.uk/article/21415/national-minimum-wage.aspx).
All the best for the new year and for your new job!
Michael Carty
Posted by Michael Carty
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December 29, 2008 6:28 AM
Posted on December 29, 2008 06:28
hey, i am 17 and i dont understand why those who are older are able to earn more money doing the exact same job you are doing, i do not believe in age discrimination when it comes to wages and think that this is very unfair. basically cheap labour.
Posted by juliet | January 18, 2009 12:45 AM
Posted on January 18, 2009 00:45
thought you might like to know the great Arcadia company has decided to defer annual pay rises from April 2009 to September.As aworker of ten years experience, as of October if there is a minimum wage increase i will be on the minimum wage the same as a new Saturday worker .
Posted by tigger | February 11, 2009 9:18 PM
Posted on February 11, 2009 21:18
So what do will the likely minimum wage be as of October 2009?
Posted by Lauren | February 28, 2009 10:31 AM
Posted on February 28, 2009 10:31
Thanks for your question, Lauren. We won't know for sure until the Low Pay Commission announces its recommendation on 1 May 2009, but a low or zero increase seems highly likely: http://www.xperthr.co.uk/blogs/employment-intelligence/2009/01/2009-national-minimum-wage-inc.html
Posted by Michael Carty
|
February 28, 2009 12:28 PM
Posted on February 28, 2009 12:28
Having had to work for the Minimum Wage for some years now it is very down turning for all, but why do the Minimum Wage workforce of this Country have to wait until October to get this Vital Increase in basic living. why cant the Minimum Wage be increased in April to cover the basics like rent and Council Tax Increases when these taxes go up Every Year and we have to wait and struggle until October every year to get this pitiful few pence extra.
Posted by Robert Reeder | March 7, 2009 12:25 PM
Posted on March 7, 2009 12:25
As an employer of 4 people (a small retail shop)I have to say that my business is struggling to maintain the minimum wage and if it goes to £6 in October I will be forced to not employ any staff, also I think the government should supplement the incomes of small businesses as the number of hours I work I am on much less than the minimum wage. Due to the nature of my business I do have to employ some staff (I already work 60 hrs a week) and it is not great when sometimes I can not afford to pay myself.
Posted by John Clifford | April 1, 2009 12:39 AM
Posted on April 1, 2009 00:39
Whilst the current climate is not good for employers and employees alike, I do not think it is fair to consider freezing the minimum wage. The price of living has gone up, and people earning the minimum wage already have little allowance for luxury items, a zero increase may force some people out of their homes. Considering that the credit crunch was not caused by prudent individuals such as myself,who avoid debt like the plague, I do not see why we should be made to suffer further.
Posted by chris | April 6, 2009 12:31 AM
Posted on April 6, 2009 00:31
i work at a local shop in my hometown, iam 15 so understand that im not intilted to the minium wage, but i do have my national insurance number,at the time being iam only recieveing £18 for 6 hours of work which includes heaving lifting,which means im only getting £3 an hour,the person i work with is over 16 and does 9 hours a day, she is only recieving £28 for 9 hours, this means she is only getting £3.80 on hour, which is way below what it says is the minium wage, i wonder what action i can take to insure that me and my workmates are getting paid the right amount each week.
Posted by Anonymous | April 11, 2009 4:14 PM
Posted on April 11, 2009 16:14
@anonymous, aged 15 - there is an official minimum wage helpline for employees, run by HM Revenue and Customs. They should be able to answer your questions. The number is 0845 6000 678 and it is open from 9 to 5 on Monday to Friday. You can also see more advice and guidance on this page
Posted by David Shepherd | April 12, 2009 11:16 AM
Posted on April 12, 2009 11:16
PLEASE PAY CARE WORKERS MORE MONEY THAN THE MINIMUM WAGE IT IS VERY HARD WORK MENTALLY AND PHYSICALLY AND ALL WE GET IS THE MINIMUM WAGE FOR VERY LONG HOURS TO MAKE SOME MONEY ALSO NURSES NEED TO BE PAID MORE MONEY TOO THEY WORK EXTREMELY HARD AND SAVE PEOPLE PLEASE PLEASE LOOK AT WHAT WE GET PAID THANKYOU
Posted by Anonymous | May 5, 2009 9:04 AM
Posted on May 5, 2009 09:04
I work in a store earing £5.88 an hour which due to the recession is going down to £4.77 an hour/. As i am 19 i know this is the minimum wage. What concerns me though is that in a few months time this will decrease again to £4.34, is there changes happening again in a few months or is this illegal?
Posted by Anonymous, aged 19 | July 18, 2009 4:08 PM
Posted on July 18, 2009 16:08
Dear Anonymous, aged 19
The national minimum wage rate for workers aged 18 to 21 inclusive is currently set at £4.77 per hour. With effect from 1 October 2009, this rate will rise to £4.83 per hour.
As my colleague David Shepherd advised another person who commented earlier on this page: "There is an official minimum wage helpline for employees, run by HM Revenue and Customs. They should be able to answer your questions. The number is 0845 6000 678 and it is open from 9 to 5 on Monday to Friday. You can also see more advice and guidance on this page: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201."
All the best
Michael Carty
Posted by Michael Carty
|
July 18, 2009 8:42 PM
Posted on July 18, 2009 20:42
i am 20 years old i have be working as a plumber apprentice for 3 years and completed my traing. have been qualifyed for 2 years and still not had a raise i am on 3.40 an hour working a 8 hour day my employer think that i am on a half desent wage is there any info i can get to correct him?
Posted by Anonymous, aged 20 | July 30, 2009 2:15 PM
Posted on July 30, 2009 14:15
Dear Anonymous, aged 20
The national minimum wage rate for workers aged 18 to 21 inclusive is currently set at £4.77 per hour. With effect from 1 October 2009, this rate will rise to £4.83 per hour.
As my colleague David Shepherd advised another person who commented earlier on this page: "There is an official minimum wage helpline for employees, run by HM Revenue and Customs. They should be able to answer your questions. The number is 0845 6000 678 and it is open from 9 to 5 on Monday to Friday. You can also see more advice and guidance on this page: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201."
All the best
Michael Carty
Posted by Michael Carty
|
July 30, 2009 2:53 PM
Posted on July 30, 2009 14:53
hey. Im a 20 year old whos been in retail for over 5 years and id just like to have my say. 1. Everyone is outraged how minimum wage is so low! im sorry to say this but if council and government want us to spend money on things so they can have it in their pocket then they should put minimu wage for us below 22 up to atleast £5 an hour. im on minimum wage of £4.77 and after paying for bills it does not go very far!!! i had to get an overdraft because of this wage and the banks charge way too much. if your not going to put it up significanly then why not think about interest rates in banks and especially the charges they give out. i mean £25 everytime you cant pay something is ridiculous i mean why do you think we cant pay it? because of the wage!!!
2. It is discrimination that a 20 year old and 22 year old is working exactly the same job and one gets paid more than the other. i know it is meant to be a disadvantage to show that leaving school early is not a good thing but statistically everyone finishes school when they are 19 anyway! so pay raise at 22 is absurd!!! it is alos very demoralising when you work with someone only 2 years older than you and they sometimes do LESS work and we get paid LESS! it is not our fault when we are born!! why make us suffer for being born later!
3. I have seen the comfortable lives of people in retail who are quite high up why do they deserve to get more pay! just because they had a lucky break? also celebrities get sooo much pay it is unbelievable!! if everyone is saying we are in a recession then why not DECREASE their wage!!! they have massive houses and obviously arent struggling and they wouldnt struggle if they even had a decrease in income. if that was to happen then you would be able to afford more minimum wage
4. i think the people who decide this minimum wage why not actually come down to our level? see how hard it is. because no doubt all of you are getting paid quite comfortably. but if you came down to £4.77 and being in the world where you have to pay for EVERYTHING especially with mortgages and bills increasing you would not survive.
5. one last thing, personally i think more jobs need to be available. almost every job now requires grades. however some people are not as bright as others not by their own doing its just a natural balance. and it is not some peoples fault that they are not paticularly brainy. so why should they suffer for it. Offer training in jobs so then they have a chance atleast. i mean university and college costs ALOT! and everybody knows parents cannot usually fork out all that money for their kids. and when your in a £4.77 hour job and paying bills you will never have the chance to save the money to get the grades therefore being stuck in the same job of low pay.
6. if you really want your people to be happy and thrive and if your moaning about getting less money in your pocket then maybe you should rethink the fact that it is because minimum wage is stopping us from giving you that money coz we cannot spend it as we have none!!!
7. and i know this hardly has anything to do with minimum wage but bus service is a service right? so shouldnt it be free. instead of our taxes going into their pockets and resurfacing tennis courts use it to give us free travel. i mean when you think about it £4.77 an hour is basically paying for one days worth of bus travel or less. you end up spending a quater of your wage getting to and from work. it is outrageous! i do believe council need to start having people coming down to our level for a year with our pay of £4.77 not over 22 because that is not being all rounded and then see what you think because its all well and good announcing our wage when your not the one struggling in it yourself
Posted by Anonymous | August 30, 2009 10:34 PM
Posted on August 30, 2009 22:34
Thank you for your comment, Anonymous 20 year old.
If it is any consolation to you, the national minimum wage development rate - which covers workers aged 18 to 21 - is set to rise to £4.83 per hour from 1 October 2009 (see: http://www.xperthr.co.uk/blogs/employment-intelligence/2009/05/national-minimum-wage-20092010-3.html). This represents an increase of 1.3%.
The Low Pay Commission, which advises the Government on each year's national minimum wage increase, takes a range of factors into account when compiling its national minimum wage recommendations, including prevailing economic conditions and the needs of workers. More on its work can be found here: http://www.lowpay.gov.uk/lowpay/what_we_do.shtml
Posted by Michael Carty
|
August 31, 2009 6:09 AM
Posted on August 31, 2009 06:09
Hi,
I am 18 year old and am woeking in a fast food restaurant 8 months now and Im still getting £4.77 an hour is ther eeny possibility that i can get more money or i have to wait till i will be 21?
i look forward to hearing from you.
thank you x
Posted by natalie | August 31, 2009 4:17 PM
Posted on August 31, 2009 16:17
Thank you for your comment, Natalie. It sounds as though you are receiving the correct national minimum wage for individuals aged 18 to 21, which is currently set at £4.77 per hour.
Of course I don't know the specific employment arrangements at your place of work, so I don't know if the potential exists for you to be paid above the statutory minimum in your current role.
However, the national minimum wage for 18 to 21 year olds will undergo its annual increase on 1 October 2009, rising to to £4.83 per hour: http://www.xperthr.co.uk/article/21415/national-minimum-wage.aspx
I hope that this information will be of some use to you.
Kind regards
Michael
Posted by Michael Carty
|
August 31, 2009 4:49 PM
Posted on August 31, 2009 16:49
UK deep sleep with minimu wages .most of country EU minimum wage over 10 euro per hour the cost to live on uk more than doubel then other contry eu .shit coverment shit bisnismens .
Posted by BOSSS | September 13, 2009 12:40 AM
Posted on September 13, 2009 00:40
Thank you for your comment, Bosss. The national minimum wage is set to increase by 1.2% from 1 October 2009: http://onlinejournalismblog.com/2009/09/09/data-and-the-future-of-journalism-panel-discussion-linked-data-london/
What do other readers think about the level of the October 2009 national minimum wage increase?
Posted by Michael Carty
|
September 13, 2009 8:40 AM
Posted on September 13, 2009 08:40
i have been working for many years now at the min wage .i think it should go up to 6.10 an hour ,even at that its poor for the level of work provided .can you confirm the rise for me i am over 22 years of age .there seems to be to many variations being banded about .thanks
Posted by janette ross | October 1, 2009 1:21 PM
Posted on October 1, 2009 13:21
Thank you for your comment, Janette. The 2009/2010 national minimum wage increase, which came into effect today (Thursday 1 October 2009) saw the adult rate (for individuals aged 22 and over) increase by 1.2%, to £5.80 per hour. Full details here: http://www.xperthr.co.uk/article/21415/national-minimum-wage.aspx
Posted by Michael Carty
|
October 1, 2009 1:25 PM
Posted on October 1, 2009 13:25
hi i get paid 6.15 an hour but have been paid this for 3years are we intiteld to a wage increase by law each year
Posted by g.ross | October 31, 2009 2:21 AM
Posted on October 31, 2009 02:21
Thanks for your question, Gaz.
The national minimum wage sets out the minimum hourly amount that every employee is entitled to be paid.
The rate that you mention (£6.15 per hour) remains above the latest national minimum wage increase, which came into effect on 1 October 2009 and saw the national minimum wage adult rate (for workers aged 22 and over) rise by 1.2%, to £5.80 per hour.
The employer is only obliged by law to increase the hourly rates paid to staff if they are set below the current national minimum wage, or to ensure that the hourly rate paid to the lowest-paid workers in the organisation remains in line with that set out in the annual national minimum wage increase (which comes into effect on 1 October each year).
- Full details of the current national minimum wage can be found here: http://www.xperthr.co.uk/article/21415/national-minimum-wage.aspx
- What can we expect from the 2010/2011 national minimum wage increase? http://www.xperthr.co.uk/blogs/employment-intelligence/2009/09/what-can-we-expect-from-the-20.html
If you have any concerns about the national minimum wage, please remember that there is an official minimum wage helpline for employees, run by HM Revenue and Customs. The number is 0845 6000 678 and it is open from 9 to 5 on Monday to Friday. Further guidance is available here: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201
Kind regards
Michael
Posted by Michael Carty
|
October 31, 2009 5:58 AM
Posted on October 31, 2009 05:58
Hi, my name is Gary and i'm 20 years old.
I personally think that £4.77 an hour is well below the rate we should be getting!
20 year olds these days are leading there own lives, moving away for things such as uni, or just general life.
How are they supposed to support themselves on such a low rate?
It is absolutely rediculous! I mean, do you not take in to consideration some 20 years olds, even 18, 19 year olds live in there own place nowadays. Paying for gas, electric, tv licnece, rent, water bills etc etc. These important things, are not cheap!
£4.77 is simply not enough money to live on, especially if you are at university.
My example is myself, i'm a full time student at university. I have two jobs, i clock up 22 hours combined with them. With university on top of that it doesn't leave me a lot of time to earn more money. Are people forgetting how expensive education is these days?
More and more students are dropping out of education, to work endless amount of hours to somehow be able to afford living expenses.
This needs to be sorted ASAP!!!
Posted by Gary Sharples | February 26, 2010 11:32 AM
Posted on February 26, 2010 11:32
Thank you for your comment, Gary.
The national minimum wage rate for those aged 18 to 21 (the development rate), currently stands at £4.83 per hour with effect from Thursday 1 October 2009.
If you have any concerns about the national minimum wage, please remember that there is an official minimum wage helpline for employees, run by HM Revenue and Customs. The number is 0845 6000 678 and it is open from 9 to 5 on Monday to Friday. Further guidance is available here: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201
The 2010/2011 national minimum wage announcement (which will set out the national minimum wage rates set to come into effect from 1 October 2010) is expected "within a couple of weeks": http://www.xperthr.co.uk/blogs/employment-intelligence/2010/02/national-minimum-wage-announce.html
Best wishes
Michael Carty
Posted by Michael Carty
|
February 26, 2010 11:44 AM
Posted on February 26, 2010 11:44
Hi, my mum is 53 and I am 19 but we both get paid the same amount at £5.80 per hour. Surely my mum should be getting paid more than me? Is this correct or not?
Also how many day's a year should a full time worker and a part time worker recieve in holidays?
Kind Regards
Sarah Reynolds
Posted by Sarah Reynolds | April 9, 2010 10:11 PM
Posted on April 9, 2010 22:11
Thanks for your comment, Sarah.
The national minimum wage adult rate (paid to workers aged 22 and over) is £5.80 per hour, while the development rate (for workers aged 18 to 21) is £4.83 per hour.
You can find details of the current national minimum wage rates here: http://www.xperthr.co.uk/blogs/employment-intelligence/2009/05/national-minimum-wage-20092010-3.html
The national minimum wage increase for 2010/2011 comes into effect on 1 October 2010. Full details of the new rates can be found here: http://www.xperthr.co.uk/blogs/employment-intelligence/2010/03/national-minimum-wage-20102011-2.html
If you have any concerns about the national minimum wage, please remember that there is an official minimum wage helpline for employees, run by HM Revenue and Customs. The number is 0845 6000 678 and it is open from 9 to 5 on Monday to Friday. Further guidance is available here: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201
Details of holiday entitlements can be found here: http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/index.htm
Kind regards
Michael
Posted by Michael Carty
|
April 10, 2010 5:37 AM
Posted on April 10, 2010 05:37
hello, I m a mental health nurse.. working in a non nhs organisation. I've been working for 5+ yrs for them. now my salary is £10.25 per hour. Am I paid the right scale.
please give me some idea. thank u
Posted by anonymous | June 21, 2010 8:36 PM
Posted on June 21, 2010 20:36