National minimum wage 2009/2010: 1.2% increase to £5.80 per hour announced for October 2009

Update (Sunday 8 May 2011): National minimum wage 2011/2012: How will the 2.5% increase to £6.08 for October 2011 stack up against inflation? With private sector pay expectations subdued, the 2011/2012 national minimum wage increase could prop up whole economy pay awards in the closing months of 2011. But how will it compare with inflation? It was announced on Thursday 7 April 2011 that the national minimum wage adult rate will increase to £6.08 per hour for 2011/2012, with effect from 1 October 2011. This represents an increase of 2.5% from the 2010/2011 national minimum wage adult rate, which currently stands at £5.93 per hour (from 1 October 2010 to 30 September 2011). The 2011/2012 national minimum wage adult rate (at £6.08 per hour) is therefore set 15p per hour higher than the 2010/2011 rate. The BBC’s Robert Peston commented via Twitter that the “announced increase in the [national] minimum wage of 2.5% to 608p is considerably less than current rate of inflation.”

Update (Thursday 7 April 2011) >> National minimum wage 2011/2012 announced:

The national minimum wage adult rate will increase to £6.08 per hour for 2011/2012, with effect from 1 October 2011. This represents an increase of 2.5% from the 2010/2011 national minimum wage adult rate, which currently stands at £5.93 per hour (from 1 October 2010 to 30 September 2011). The 2011/2012 national minimum wage adult rate (at £6.08 per hour) is therefore set 15p per hour higher than the 20102/011 rate.

According to the Department for Business, Innovation and Skills (BIS) the national minimum wage rates for 2011/2012 will be as follows:

The following rates will come into effect on 1 October 2011:

  • The adult rate will increase by 15p to £6.08 an hour;
  • The rate for 18-20 year olds will increase by 6p to £4.98 an hour;
  • The rate for 16-17 year olds will increase by 4p to £3.68 an hour; and
  • The rate for apprentices will increase by 10p to £2.60 an hour.

Business Secretary Vince Cable comments:

More than 890,000 of Britain’s lowest-paid workers will gain from these changes. They are appropriate – reflecting the current economic uncertainty while at the same time protecting the UK’s lowest-paid workers. I would like to thank the LPC for doing a good job in difficult circumstances.

The BBC’s Robert Peston comments via Twitter:

Today’s announced increase in the minimum wage of 2.5% to 608p is considerably less than current rate of inflation.

Previous updates:

National minimum wage: What are the new rates for 2010/2011? and National minimum wage: Increases for 2010/2011 effective today Full details of the national minimum wage rates for 2010 and 2011, which came into effect from 1 October 2010.

2011 Budget: Can we expect an announcement on the national minimum wage 2011/2012? Can we expect the national minimum wage rate for 2011/2012 (which will come into effect from 1 October 2011) to be announced in the 2011 Budget speech, which Chancellor George Osborne is set to deliver on Wednesday 23 March 2011? The national minimum wage 2011/2012 announcement will be highly anticipated, as this will represent the first time that the level of the national minimum wage will have been set under a Conservative Chancellor since the introduction of the national minimum wage in 1999.

A policy on enforcement, prosecutions and naming employers who flout national minimum wage law (PDF format, 108.2K) came into effect on 1 January 2011.

National minimum wage 2010/2011: Why some 21 year-olds will be enjoying a 22.8% pay increase  The adult rate of the national minimum wage will be extended to 21 year-old workers from October 2010 (subscription required) (it is currently paid to workers aged 22 and over). This means that workers who have turned 21 prior to 1 October and who are receiving the national minimum wage when the 2010/2011 national minimum wage uprating comes into effect can look forward to an increase that is effectively worth (what is likely to prove to be) an inflation-busting 22.8%.

National minimum wage 2010/2011: Government confirms October 2010 increase will go ahead as planned

National minimum wage 2010/2011: 2.2% increase to £5.93 per hour announced for October 2010

What will George Osborne’s emergency budget mean for the national minimum wage in 2010/2011 and beyond?

National minimum wage: What the 2010 general election manifestos promise

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The Government has announced the national minimum wage rate for 2009/2010 (external website). 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%.

****

UPDATE:

National minimum wage: What are the new rates for 2010/2011? and National minimum wage: Increases for 2010/2011 effective today Full details of the national minimum wage rates for 2010 and 2011, which came into effect from 1 October 2010.

2011 Budget: Can we expect an announcement on the national minimum wage 2011/2012? Can we expect the national minimum wage rate for 2011/2012 (which will come into effect from 1 October 2011) to be announced in the 2011 Budget speech, which Chancellor George Osborne is set to deliver on Wednesday 23 March 2011? The national minimum wage 2011/2012 announcement will be highly anticipated, as this will represent the first time that the level of the national minimum wage will have been set under a Conservative Chancellor since the introduction of the national minimum wage in 1999.

A policy on enforcement, prosecutions and naming employers who flout national minimum wage law (PDF format, 108.2K) came into effect on 1 January 2011.

National minimum wage 2010/2011: Why some 21 year-olds will be enjoying a 22.8% pay increase 

National minimum wage 2010/2011: Government confirms October 2010 increase will go ahead as planned

National minimum wage 2010/2011: 2.2% increase to £5.93 per hour announced for October 2010

What will George Osborne’s emergency budget mean for the national minimum wage in 2010/2011 and beyond?

National minimum wage: What the 2010 general election manifestos promise

This is in line with the increase recommended by the Low Pay Commission (LPC) in its 2009 report (PDF format, 5MB) (on the LPC website).

The Government has also announced that, with effect from 1 October 2009:

  • the national minimum wage development rate (for workers aged 18 to 21) will rise from £4.77 per hour to £4.83 per hour (an increase of 1.3%); and
  • the national minimum wage youth rate (for workers aged 16 and 17) will rise from £3.53 per hour to £3.57 per hour (an increase of 1.1%).

Additionally, the adult rate of the minimum wage will be extended to 21 year-old workers from October 2010.

As Mark Crail notes on the website of CELRE (part of the XpertHR group):

The increase is the lowest since a statutory minimum wage was introduced in April 1999, and is likely to significantly influence pay settlements across the wider economy during the final months of 2009.

LPC chairman George Bain comments:

These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage. We believe that the Low Pay Commission’s recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers’ jobs as well as their earnings.

CBI director-general John Cridland immediately issued a supportive statement (external website), praising what he termed the latest national minimum wage increases. According to Cridland:

This moderate increase recognises that many businesses are struggling, and helps protect jobs at a time of rising unemployment. The inflation-busting rise some unions had called for would have hit firms hard and put many lower paid workers on the dole.

The increases announced today are below consumer prices index (CPI) inflation - the Government’s preferred measure – which currently stands at 2.9%. But they are significantly above the rate of retail prices index (RPI) inflation, which is currently languishing in negative territory, running at -0.4% in March 2009 (subscription required).

However, latest inflation forecasts published to XpertHR show that RPI is expected to rebound quickly (subscription required), moving back into positive figures in the first quarter of 2010.

The TUC takes this account in its response to today’s announcement, emphasising the need for a much higher national minimum wage increase for 2010, in order to prevent earnings growth for the lowest paid workers falling behind that for the rest of the economy. TUC general secretary Brendan Barber comments:

The LPC was right to withstand pressure from business to freeze the minimum wage. [...] But this increase is a very slender one. The LPC must be much more generous when the economy recovers next year.

As we have noted, discussions surrounding the 2009 national minimum wage decision have been heated. And this lively state of affairs looks set to continue now that the Government’s decision on the 2009/2010 national minimum wage rate is known.

The CIPD, for example, argues that the decision to increase rather than freeze the national minimum wage is likely to have a negative effect on those hardest hit by the recession (external website). According to CIPD reward advisor Charles Cotton:

While we support the LPC, we are concerned that this decision will increase the risk of job losses in low paid sectors. This should have been avoided at a time when deflation on the RPI measure of inflation [would] limit the impact of a national minimum wage freeze on people’s real living standards. Our greatest concern at the moment is for younger workers and job seekers.

Update (Sunday 8 May 2011): National minimum wage 2011/2012: How will the 2.5% increase to £6.08 for October 2011 stack up against inflation? With private sector pay expectations subdued, the 2011/2012 national minimum wage increase could prop up whole economy pay awards in the closing months of 2011. But how will it compare with inflation? It was announced on Thursday 7 April 2011 that the national minimum wage adult rate will increase to £6.08 per hour for 2011/2012, with effect from 1 October 2011. This represents an increase of 2.5% from the 2010/2011 national minimum wage adult rate, which currently stands at £5.93 per hour (from 1 October 2010 to 30 September 2011). The 2011/2012 national minimum wage adult rate (at £6.08 per hour) is therefore set 15p per hour higher than the 2010/2011 rate. The BBC’s Robert Peston commented via Twitter that the “announced increase in the [national] minimum wage of 2.5% to 608p is considerably less than current rate of inflation.”

Update (Thursday 7 April 2011) >> National minimum wage 2011/2012 announced:

The national minimum wage adult rate will increase to £6.08 per hour for 2011/2012, with effect from 1 October 2011. This represents an increase of 2.5% from the 2010/2011 national minimum wage adult rate, which currently stands at £5.93 per hour (from 1 October 2010 to 30 September 2011). The 2011/2012 national minimum wage adult rate (at £6.08 per hour) is therefore set 15p per hour higher than the 20102/011 rate.

According to the Department for Business, Innovation and Skills (BIS) the national minimum wage rates for 2011/2012 will be as follows:

The following rates will come into effect on 1 October 2011:

  • The adult rate will increase by 15p to £6.08 an hour;
  • The rate for 18-20 year olds will increase by 6p to £4.98 an hour;
  • The rate for 16-17 year olds will increase by 4p to £3.68 an hour; and
  • The rate for apprentices will increase by 10p to £2.60 an hour.

Business Secretary Vince Cable comments:

More than 890,000 of Britain’s lowest-paid workers will gain from these changes. They are appropriate – reflecting the current economic uncertainty while at the same time protecting the UK’s lowest-paid workers. I would like to thank the LPC for doing a good job in difficult circumstances.

The BBC’s Robert Peston comments via Twitter:

Today’s announced increase in the minimum wage of 2.5% to 608p is considerably less than current rate of inflation.

Previous updates:

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36 Responses to National minimum wage 2009/2010: 1.2% increase to £5.80 per hour announced for October 2009

  1. Kirsty Andrews 19 June 2009 at 1:58 pm #

    I think that the minimum wage for 16 and 17 year olds is terrible. I know that they are not paying bills and buying household items but it means that if they have to pay lodge, or buy their own clothes they are going to be limited on everything else. Why is it that low? Then you get the MP’s on an absolute fortune every year and they are claiming expenses when there are children working for as little as that. I think that everybodys minimum wage should be the same, (not including more qualified people of course) and it should be at least £6! Anyone agree?

  2. Michael Carty
    Michael Carty 19 June 2009 at 2:28 pm #

    Thanks for the comment, Kirsty. At 1.1.%, the October 2009 national minimum wage increase for 16 and 17 year olds (the youth rate) is set lower than the increases to the adult rate (for those aged 22 and over) and the development rate (for workers aged 18 to 21).

    But encouragingly, there is evidence that some employers are going beyond the statutory pay floor for 16 and 17 year olds. A recent survey from IRS – http://www.xperthr.co.uk/article/91233/the-national-minimum-wage-10-years-on–employers-views.aspx (subscription required) – found that among employers who gave details of the hourly rate they pay to 16 and 17 year olds, the vast majority (84.2%) pay above the current minimum rate for this group (£3.53 per hour), with 17.4% of those answering this question paying £7 or more per hour.

    Further, when asked what the current youth rate should be, almost three in 10 employers (28.4%) said they think 16 and 17 year olds should be paid at the same rate as adults.

    As ever, we would be very interested to hear more on your views on this issue – whether you are an employer, a worker directly affected by the youth rate of the national minimum wage, or anybody else. Please leave comments in the box below.

  3. Mike Statham 7 July 2009 at 12:34 am #

    As a small business owner and employer maybe I can answer some of Kirsty’s questions from a very different perspective.

    Firstly, I do remember being 16 myself (and paid very badly – it wasn’t all that long ago!). I also agree that when some people (politicians, bankers etc…) are raking in shockingly large sums of money for jobs which don’t appear to be very well done, it seems incredible that they can suggest other people (even 16 year olds with little experience) should only earn £3.53 an hour.

    BUT, the number of people actually on the kind of salaries politicians get is really very small. Mean salaries are often quoted on the news, when what is really needed is the modal salary (the one most commonly earned) – I don’t know what you recall about averages, but means can be very deceptive as a few extremely high (or extremely low) values can easily distort them. This is of course why politicians like to quote them!

    Also, there are a great many people like myself running small businesses in the UK and employing people on a minimum wage, or close to it. At the moment the economic climate and high taxation/running costs mean many of us struggle to earn £4 an hour ourselves, especially when you consider that it’s common for a small business person to put in a 60/70 hour+ week. As we are self employed we have no minimum wage to protect our earnings and the taxman/Vatman is only too happy to rob us, however poor our takings.

    We also need to employ people, and are one of the biggest contributors to employing part time workers, especially students, mothers of young children, older people, ethnic minorities, people with second jobs etc… often the kind of employees no large company would touch. We honestly cannot afford to pay the kinds of salaries we’d like to, so from our point of view realistic minimum wages are unfortunately essential.

    IF the Government was to give small businesses appropriate tax breaks (as many Governments do abroad) we’d be in a better position to reward our employeses as they deserve and minimum wages could be raised, particularly for younger workers.

  4. Michael Carty
    Michael Carty 7 July 2009 at 5:42 am #

    Thanks very much indeed for your comment, Mike. You raise some very interesting points.

    When it comes to the types of average used, the means can indeed be deceptive in certain circumstances. And while the modal average can be useful to some extent, the most representative measure of the average is usually the median. This is the midpoint or exact middle value in a range of numbers, and therefore is less likely to be distorted by extremely high values at the extreme ends of the sample.

    We use the median here in all XpertHR and IRS statistical and pay data analysis.

    The median is also used by the Office for National Statistics in its Annual Survey of Hours and Earnings (ASHE), which provides the most comprehensive snapshot of pay levels in the UK, and the findings of which also have some bearing on the Low Pay Commission’s work in setting the national minimum wage each year.

    The latest available ASHE data, relating to April 2008, find that the median hourly rate for UK workers (excluding overtime pay) is £11.87. By gender, the median rate for men is £12.50, compared with £10.91 for women.

    The post-October 2009 national minimum wage adult rate of £5.73 per hour will therefore still be set at less than half the median hourly rate (excluding overtime) for all UK workers of £11.87 per hour.

    You also raise an interesting point about the tax obligations on small business owners and their impact on the ability to pay in line with the national minimum wage. We would be particularly interested to hear from any other small business owners or employees about these issues, via the Comments box below.

  5. jodie patterson 7 August 2009 at 4:14 pm #

    i think this wage is terrible for 16-17 year old they have to work alot of hours to achieve the amount of money they need some individuals have to live by themselves at this age and they can only work so many hours because of training of being a college, this is not accseptable.

  6. Michael Carty
    Michael Carty 8 August 2009 at 7:45 am #

    Thanks for your comment, Jodie. While the national minimum wage for 16 and 17 year olds certainly does not represent a king’s ransom, at least they are covered by a statutory minimum amount. Many interns are not so lucky in 2009: http://www.xperthr.co.uk/blogs/employment-intelligence/2009/08/2010-national-minimum-wage-rep.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

  7. anthony 11 September 2009 at 1:37 pm #

    5.57 is a lot for youths i remember in 1992 i was getting £30 a week thats all that was for 40hrs week tree felling hard work thats about 0.80 hr so be thankfull…….

  8. Michael Carty
    Michael Carty 11 September 2009 at 1:41 pm #

    Thank you very much for your comment, Anthony. That sounds like very hard work indeed!

  9. jessica 3 October 2009 at 6:30 pm #

    I think people for get how much things have gone up since “there day and age” yes my mum also speaks of how little she got paid back in those days but to buy things these days are a lot more expensive and people forget that I bet if you think what you could get in those days for even £10 would take you a lot further than it would in these days, to buy a house was about 10,000 cheaper. I’m a 19 year old working full time for virgin (Richard Branson) i get paid 5.15 hour which is so little for me to live on. My Dad passed away 12 years ago and IV had my mum to bring two kids up, my brother aged: 22 passed away also last year so now my mum feels to ill to work. So i have to pay for my phone bills, feed myself, clothes that’s needed as you grow out of them the supply a girl needs growing up, To buy myself a car to get to work, car insurance car tax, Petrol to get to work which takes most my salary and general day to day cost. People don’t realise how young and unlucky we are to have to fend for ourselves in these days having lost a parent or even parents, if i lost both my parents like some poeple out there i couldnt afford to buy all the things i do and pay rent. I couldn’t even if I wanted to think about leaving home as I couldn’t even afford rent at 40 hours a week on £5.15 this wage is so poor and if needed i cant even get a credit card to help out it gets me nothing at the end of every month specially working for a big company, at 19-20 years of age I’m a young adult that doesn’t have the chance to start a life with the costs of moving out because of the minimum wage I’m not even entitled to ask for a rise or to even if my mum got to depressed look after myself and my mum.

  10. Michael Carty
    Michael Carty 4 October 2009 at 6:20 am #

    Thank you for sharing your story here, Jessica.

    If it’s any consolation to you, your employer is paying you above the current national minimum wage rate for those aged 18 to 21 (the development rate), which stands at £4.83 per hour with effect from last Thursday (1 October 2009).

    And with effect from 1 October 2010 (when the next national minimum wage increase will come into effect), the main national minimum wage (adult) rate will be extended to apply to 21 year olds. The main (adult) rate currently applies to workers aged 22 and over and 21 year olds come under the development rate.

    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

    Best wishes

    Michael Carty

  11. Stuart 7 October 2009 at 1:16 pm #

    Why does everyone get different pay its not as if you are doing any less work because you are younger ther are older ppl in my work who do less work than me yet get a quid extra which isnt much but would all add up

  12. Michael Carty
    Michael Carty 7 October 2009 at 1:27 pm #

    Thanks for your comments, Stuart.

    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

    You may also be interested to know that the Low Pay Commission (LPC) – which publishes recommendations on the level at which the Government should set the national minimum wage in its annual report – is currently undertaking a series of ‘visits’. These will feed into its evidence-based approach to compiling the 2010 LPC report, which will set out its recommendations to the Government on the national minimum wage for 2010.

    Details of the remaining visits for the 2010 report can be found here: http://www.lowpay.gov.uk/lowpay/Visits_information_for_the_web_site.DOC

    Kind regards

    Michael carty

  13. darren wildgoose 9 October 2009 at 12:06 am #

    i think the wage act is terrible you see all those high earners on big bucks and were on a low 5.80ph why is that i think it is unfair i mean ive got a house a wife and a kid and i have to settle for 5.80ph which is about 200 a week after tax then i have bills to pay and shopping and clothes for my child and ourselves its rediculous cause were always scraping for cash cause of the wage structure why cant we not all be paid the same as the rest of the big earners so we can have a good living life like use absolutley rediculous i think use need to have a look at yourselves and put everyone on the same salary.

  14. Michael Carty
    Michael Carty 9 October 2009 at 6:23 am #

    Thanks for your comments, Darren.

    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 carty

  15. Michael Carty
    Michael Carty 23 November 2009 at 7:55 am #

    Thanks for your comment, anonymous, aged 17.

    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

  16. Mabelle 20 January 2010 at 10:46 pm #

    You Work your butts out getting home late at night especially in this cold freezing weather just at least 3 times a week just to get what…that little sum of money at the end of two weeks. when i think of this i just feel like there is no point in doing the job because as most people say you do the same job as everyone you work with but you get different rates of pay, how is that fair. if only you were given less work to do as you were being paid less…then most could understand. really,i think our rates (16-17) should be increased to at least £4. Some serious talks needs to be done about this issues. Increase this rate please we. It will encourage me more; i don’t know about others

  17. Michael Carty
    Michael Carty 21 January 2010 at 8:11 am #

    Thank you very much indeed for your comment and for sharing your experience of what it is like to be on the receiving end of the national minimum wage rate for 16 and 17 years olds, Mabelle.

    The CIPD has recently called for the national minimum wage rates paid to younger workers to be frozen in 2010/2011 (http://www.xperthr.co.uk/blogs/employment-intelligence/2010/01/national-minimum-wage-20102011-1.html), although the Government has yet to announce what the 2010/2011 national minimum wage increases will be.

    Keep track of discussions around the 2010/2011 national minimum wage increase here: http://www.xperthr.co.uk/blogs/employment-intelligence/2009/09/what-can-we-expect-from-the-20.html

    Kind regards

    Michael

  18. Sue Morley 11 February 2010 at 4:16 pm #

    I am a small business owner and think that the NMW is an appropriate tool to use. In this terrible climate many businesses have not been able to survive and some of us are really struggling. We have not had a wage for over 1 year so that we can employ staff, keeping the business going, pay the men. We are in a position to look at taking some people on for a short term, the NMW gives us the opportunity to employ some people, who may not have been working for over a year, give them a trial at a new place of work, see their skills, without costing the company too much that it does not make economical sense (especially if the new employees need to gain confidence & may make some mistakes which still cost the company money) and then we look at each individual and if we are in a position to increase their hourly rate because their skills/workload dictates, then that is what we do.

    As to being able to live and afford, perhaps people should not be having children if they are not in a position to provide for them at this time, they should be leaving it till they have established their career and can afford them.

  19. Michael Carty
    Michael Carty 11 February 2010 at 5:22 pm #

    Thank you very much indeed for your comment, Sue, and for sharing your experience of and views on the national minimum wage.

    I’d be very interested indeed to hear from any other small business owners or employees, with regard to how the national minimum wage affects you.

    Kind regards

    Michael

  20. Tracy Goree 13 February 2010 at 1:36 pm #

    It makes me laugh when I read of how ‘little’ someone got paid when they were younger. 25 years ago I was getting paid approximately £60-£70 a week for a 60 hour week, yet it covered my rent, my food, new clothes and socialising, so lets get it in perspective and remember that our wages covered our expenditure, unlike today.

    Both my girls are now ready to move out of the family home (4 women [including my mother]under one roof is not good!). My eldest works 40-50 hours a week, working as hard as the next person, paying adult prices everywhere, yet at 20 years of age is not entitled to an adult wage. As such neither can afford to leave home, a home that is becoming increasingly more uncomfortable for all of us.

    Isn’t about time that anyone who has to pay their way as an adult should get the wage to go with it?

    How is it that by the time both girls were 16 they were paying the adult price to get into the cinema or on the bus and yet get paid a second class wage? How is that by 18 they can work an adult job and do the adult hours yet get a second class wage? If you want our youths to become adults, then treat them like adults and give them the wage they deserve.

  21. Michael Carty
    Michael Carty 13 February 2010 at 4:42 pm #

    Thank you for your comment, Tracy.

    If it is any consolation to you, it has been announced that the main (adult) rate of the national minimum wage will apply to 21 year olds from October 2010. At present, the main (adult) rate currently applies to workers aged 22 and over and 21 year olds come under the development rate.

    Kind regards

    Michael

  22. Tracy Goree 13 February 2010 at 6:15 pm #

    Many thanks for the prompt reply Michael. I wasn’t sure if this thread was still open after so long.

    Whilst it may be of some consolation to my eldest who will be 21 in May, it’s of little help to my youngest. It gives her little incentive to go out and look for more hours and/or a better job.

    She went for a trial in a bar a few nights ago as a means to supplement her meagre wages. She’ll be working til 2am doing the same work as the older youngsters working there yet still getting the pathetic minimum wage that her age group are entitled to. Little wonder she gets confused as to whether she is an adult or not.

  23. mark duxberry 14 February 2010 at 4:36 pm #

    it make you wonder how many firms who back the labour government.are setting the wage,s increase.s

  24. Michael Carty
    Michael Carty 17 February 2010 at 7:45 am #

    Thank you very much for your comment, Anonymous.

  25. kevin chandler 25 February 2010 at 4:11 pm #

    I AM WORKING FOR A WELL KNOWN PHAMACY COMPANY AND BACK IN 209 I SPOKE TO MY AREA MANAGER AND ASKED FOR A PAY RISE HE SAID HES IN NOVEMBER BUT UNKNOWN TO ME THE THE GOVERMENT PUT THE MINIMUM WAGE UP TO £5.80 THAT WAS THE ONLY PAY RISE THAT I GOT NOT FROM THE COMPANY HOW TIGHT IS THAT.I THINK THAT THE MINIMUM WAGE SHOULD BE AT LEAST £6.50 PER HOUR.WHICH IS NOT TO BAD.

    KEVIN CHANDLER

  26. Becca 26 February 2010 at 1:23 am #

    I actually think the wage should be the same for all employees. 16-17 year olds work the same amount of hours (full time) yet are recieving just over half of their wage. In all fairness, this is discrimination

  27. christine 28 March 2010 at 5:20 pm #

    I have a small business. I can no longer afford to employ staff.
    We rely on our customers to pay there board fees, which will in turn cover the costs of the product we provide and the staff we employ.
    I was seriously ill last year, my husband had to employ more staff to cover my absence.
    Since coming home, even though i am not fit enough to do so. Just to keep the business afloat, i had to let staff go as we could not afford to pay them. The weather dictates whether our customers go away or not, the weather has affected our business. If we do re employ people and have to pay the NMW, then we expect staff to work, but am afriad to say most of the people who come looking for work are not worth the NWM, It would be far better if there was a training wage, so we could try out people for a month and train them to the standards we need, if they do not reach that standard we can let them go, which would be a fairer system.

  28. Michael Carty
    Michael Carty 31 March 2010 at 5:40 am #

    Thanks for your comment, Jim.

    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

  29. jim connolly 31 March 2010 at 5:53 pm #

    Back in December 1992 i got made redundunt from the aerospace industry i was on £6.23 per hour i was a shop floor worker manufacturing propeller blades for aircraft to day i work in a motorway service area on the M4 and only get paid £5.80 per hour the point im making is 18yrs on im still being paid less than i did all those years ago i know the work i did then was skilled but you would of thought that even the micky mouse companys like the one i work for now would have caught up buy now but they haven’t all i can say is the fat cats in the company must be creaming off all the profits shame on them.

  30. Keith 7 April 2010 at 7:11 am #

    We have a skill shortage and the answer is, pay 16 – 17 year olds £3.64 per hour, apprentices under 19 £2.50 per hour ????? Hmmmm who thought that one up ? Is this the way to encourage the next generation of trades people.

    http://www.direct.gov.uk/en/Nl1/Newsroom/DG_178175

  31. Michael Carty
    Michael Carty 7 April 2010 at 7:44 am #

    Thanks very much for your comment, Keith.

    You can see more on the Government’s announcement regarding the new apprentice minimum wage rate of £2.50 per hour (which will come into effect from 1 October 2010) here: http://www.xperthr.co.uk/blogs/employment-intelligence/2010/03/national-minimum-wage-20102011-2.html

    I would be very interested to hear what other readers have to say about the level at which the apprentice minimum wage will be set. Please feel free to leave comments via the box below.

    Kind regards

    Michael Carty

  32. hakia 28 April 2010 at 9:43 am #

    i think that the national minimum wage for 16 – 17 year olds needto be increased. It should be atleast £10.

  33. Michael Carty
    Michael Carty 28 April 2010 at 10:08 am #

    Thank you for your comment, Hakia. You can find details of the national minimum wage rate for 16 and 17 year-olds for 2010/2011 (which will come into effect from 1 October 2010) here: http://www.xperthr.co.uk/blogs/employment-intelligence/2010/03/national-minimum-wage-20102011-2.html

    Kind regards

    Michael

  34. Sara Hall 20 May 2010 at 8:16 am #

    Grrr… my wage is so annoying frustrating. I know everyone is complaining about 16/17 year olds but I have a bigger problem than most of them.
    I am applying for a masters degree and so need to come up with £3,800 and living money during the year. I’ll should be doing this with a job, but :( I am 21 years old and wont be 22 until January- 5 months into my course!!! Therefore I am paid £1 an hour less than if I was 22! and it is called an ‘adult wage’! How insulting that I am not considered an adult.
    Oh and just to add-I still have to study full time science as well as work!

  35. Sara 20 May 2010 at 8:19 am #

    Oh and the apprentice wage makes some sence-as I student paying almost £4000a year,education is expensive!

  36. Michael Carty
    Michael Carty 20 May 2010 at 8:31 am #

    Hi Sara

    Thanks very much indeed for your comments.

    You might be pleased to learn that the previous Labour Government announced in 2010 that the national minimum wage adult rate will be extended to 21 year-old workers with effect from 1 October 2010 (at which point, the adult rate will also rise by 2.2%, taking it to £5.93 per hour.

    It remains to be seen how the national minimum wage will fare under the new Conservative-Liberal Democrat coalition Government. However, it is worth noting that the Liberal Democrat manifesto included a promise to extend the coverage of national minimum wage adult rate to workers aged 16 and over.

    I hope that the above will be good news for you!

    All the best with your studies and with your Masters application.

    Kind regards

    Michael

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