National minimum wage 2011/2012: How will the 2.5% increase to £6.08 for October 2011 stack up against inflation?

• Consumer prices index (CPI) inflation is expected to average 4.2% in 2011, before falling back to 2.5% in 2012, according to latest forecasts from the Office for Budget Responsibility (OBR) (PDF format, 8.8MB).
• Retail prices index (RPI) inflation - the inflation measure which most commonly informs private sector pay decisions (XpertHR benchmarking subscription required) - is expected to average 4.9% in 2011 (XpertHR subscription required), according to latest inflation forecasts compiled by XpertHR.
  

• The 2011/2012 national minimum wage adult rate increase "take[s] account of the continued economic uncertainty while protecting the lowest-paid workers from falling further behind the average."
• The LPC says that the increases to the youth rates of the national minimum wage reflect "evidence that in difficult economic circumstances the level of the minimum wage may have had an impact on the employment of young people." The LPC consequently believes that in this context "it would be imprudent to recommend an uprating of the youth rates that would be likely to further increase its bite."
• The LPC says that the 2011/2012 level of increase for the apprentice minimum wage rate was recommended as "[i]t appears that the initial Apprentice Rate has had little or no negative effect on the supply of apprentice places and the initial rate was cautious."
  

There will be room for much more generous increases in future years once the economy begins to recover.

• National minimum wage 2012/2013: What can we expect from the October 2012 national minimum wage increase? Given the current backdrop of ongoing economic uncertainty, subdued pay awards, rising unemployment and falling inflation, news of the annual increase to the national minimum wage for 2012/2013 (due to come into effect on Monday 1 October 2012) will be particularly closely watched. Here, we look at what might be expected from the national minimum wage increase for 2012/2013. This post will be kept updated as new information emerges on what we might expect from the national minimum wage in 2012/2013.
• National minimum wage 2011/2012 increase to £6.08 per hour comes into effect The national minimum wage adult rate increases to £6.08 per hour for 2011/2012 with effect from 1 October 2011. This represents an increase of 2.5% on the 2010/2011 national minimum wage adult rate, which previously stood at £5.93 per hour (from 1 October 2010 to 30 September 2011).
• The future of the national minimum wage: Two-year increases & removal of income tax burden in prospect? What might we expect from future annual increases to the national minimum wage? It is possible that we will see major change to the national minimum wage over the coming years. Potential changes include: the introduction of two-year national minimum wage increases; and an increase of the minimum income tax threshold to remove income tax obligations from workers on the national minimum wage.
  

• Pay and Work Rights Helpline contact details On the Directgov website. Directgov says: "The Pay and Work Rights Helpline gives confidential help and advice on the NMW and can handle calls in over 100 languages. If you aren't being paid the NMW you can contact the Pay and Work Rights helpline or use the online enquiry or complaint form."
• Calculating the National Minimum Wage: How to check your pay On the Directgov website. Directgov says: "Almost all workers are entitled to be paid at least the National Minimum Wage (NMW). To check if you are being paid the NMW rate you need to know your pay reference period and what elements of pay count towards the NMW."
• National minimum wage: Rates and thresholds for employers Latest info from the HMRC website.
  
• National Minimum Wage 2011 (XpertHR benchmarking subscription required) The XpertHR benchmarking survey on the national minimum wage for 2010/2011. The survey looks at the following: the impact of the national minimum wage; how employers have adjusted to the national minimum wage; and at their views on the statutory pay floor.
• International minimum wage update 2011 (Subscription required) Twenty out of 27 EU member states have a national minimum wage. In January 2011, according to the latest Eurostat data, monthly minimum wage rates ranged from €1,758 in Luxembourg to €123 in Bulgaria - more than a 14-fold difference. At €1,139, the UK's minimum wage was the EU's sixth highest.
• Low Pay Commission sets out evidence for its 2011/2012 national minimum wage recommendations (Subscription required) The 2.5% increase in the national minimum wage from October 2011 is in line with the modest rises made to the pay floor seen over the past few years. The 12th report of the Low Pay Commission sets out the evidence it considered in making this year's recommendations.
  
• National minimum wage (Subscription required) From XpertHR's statutory rates service.
• Low Pay Commission Visit the Low Pay Commission (LPC) website for further information on the national minimum wage for 2011/2012, and for previous years.
• Low Pay Commission 2011 Report (PDF format, 4.1 MB) Download the 2011 LPC report, which sets out the LPC's complete research and recommendations on the 2011/2012 national minimum wage increase.
• The National Minimum Wage rates Complete details of current and future national minimum wage rates from the Directgov website.
• National minimum wage to rise 2.5% to £6.08 The BBC reports on the 2011/2012 national minimum wage increase.