UPDATE: 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.
Today sees the UK national minimum wage break the £6 per hour barrier. The increases to the national minimum wage for 2011/2012 come into effect today (1 October 2011):
Today sees the UK national minimum wage break the £6 per hour barrier. The increases to the national minimum wage for 2011/2012 come into effect today (1 October 2011):
- The national minimum wage adult rate increases to £6.08 per hour for 2011/2012. 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 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 Low Pay Commission's (LPC) 2011 report says that "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 national minimum wage "youth development rate" (for workers aged 18 to 20) rises to £4.98 per hour (an increase of 6p per hour, or 1.2%, from the previous rate of £4.92 per hour).
- The national minimum wage youth rate (for workers aged 16 and 17) now stands at £3.68 per hour (an increase of 4p per hour, or 1.1%, from the 2010/2011 rate of £3.64 per hour).
- The apprentice minimum wage rate rises from to £2.60 per hour (an increase of 10p per hour, or 4.0%, from the 2010/2011 rate of £2.50 per hour).
- The Government has published guidance on the national minimum wage for interns (XpertHR subscription required). XpertHR reports that the guidance "confirms that entitlement to the national minimum wage does not depend on an individual's job title but on whether the arrangement that he or she has with an organisation makes him or her a 'worker' for national minimum wage purposes."
- Click here for further details of the decisions underpinning the 2011/2012 national minimum wage increases.
More on the national minimum wage:
- 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.
- 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.
- 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.
- 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.
- 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.
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