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16 April 2013

National minimum wage rates

The Government has announced the new rates for the national minimum wage, which will increase on 1 October 2013.

The new rates are as follows:

  • The standard adult rate (workers aged 21 and over) will increase from £6.19 to £6.31 per hour;
  • The development rate (workers between 18 and 20) will increase from £4.98 to £5.03 per hour;
  • The young workers rate (workers under 18 but above compulsory school age) will increase from £3.68 to £3.72 per hour;
  • The apprentice rate will increase from £2.65 to £2.68 per hour.

In addition, the accommodation offset limit (if the employer provides a worker with free accommodation) will increase from £4.82 to £4.91 per day.

The Low Pay Commission had recommended that the apprentice rate should be frozen, due to concerns over the level of compliance with the current apprentice rate.  However, the Government has decided to increase it by 3p per hour and has announced that it will be taking new measures to tackle non-compliance issues highlighted by the LPC.

The Government is also planning to simplify the current national minimum wage legislation, by introducing a single set of consolidated regulations to replace the existing set of 17 regulations.  This is expected to take effect soon.