New NMW rates confirmed
The Government has confirmed that the
national minimum wage increases and the decrease in the age at which the adult
rate becomes payable from 22 to 21, as proposed by the previous Labour
government in the March 2010 Budget, will take effect in October 2010.
Under the National Minimum Wage
Regulations 1999 (Amendment) Regulations 2010, the new rates, which will come
into force on 1st October 2010, are as follows: (i) £5.93 per hour for those aged 21 (see below) and over (a 2.2%
increase on the current £5.80 rate); (ii)
£4.92 per hour for 18-20 year olds (a 1.9% increase on the current £4.83 rate);
and (iii) £3.64 per hour for 16-17 year olds (a 2% increase on the current
Regulation 5 decreases the age at
which adult rate becomes payable from 22 to 21. Regulation 6 amends the per day
value of the living accommodation amount, increasing it from £4.51 to £4.61 for
each day that accommodation is provided.
The Government has also
extended the remit of the Low Pay Commission for its 2011 report, by requiring
the Commission to pay particular attention to the competitiveness of small
firms and the employment prospects of young people.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.