National Minimum Wage
The National Minimum Wage is due to increase on 1st October 2014 – in a couple of weeks time. You should remember that even though the National Minimum Wage increases midweek, the 1st is a Wednesday, you need to start paying from that date or before.
This years increases are:
Adult workers (21 yrs old or over) goes from £6.31 to £6.50 per hour
Workers aged 18-21 get an increase from £5.03 to £5.13 per hour
Anyone under 18 is entitled to an increase from £3,72 to £3.79 per hour
and the rate for Apprentices increases from £2.68 to £2.73 – Remember this rate for apprentices aged between 16 and 18 and those aged 19 or over in their first year of apprenticeship only. After the first year those over 19 are entitled to the National Minimum Wage.
These increases are not even as a percentage across the board. The highest (adult) rate shows a 3% increase while the lower rates do not quite represent a 2% increase.
The National Minimum Wage is, as you might expect, the same throughout the UK, it may be interesting to see if it changes in Scotland should the yes vote prevail on the 18th September. The National Minimum Wage has never taken into account regional differences although there is a Living Wage which is different for London and the rest of the UK.
The Living Wage
The Living Wage is an unofficial figure calculated to provide an informal benchmark rather than a legally enforceable figure as in the case of the National Minimum Wage, it is based on the minimum amount that is needed for workers to lead a decent life. In London the figure is currently £8.80 an hour and £7.65 in the rest of the UK, of course this is considerably higher than the National Minimum Wage.
While there is no obligation to pay the living wage there are some business, especially in the public sector, that will not deal with other businesses that do not pay the living wage as a minimum.
The Governments National Minimum Wage is found here: https://www.gov.uk/national-minimum-wage-rates
and further information on the Living Wage is available here: http://www.livingwage.org.uk
Or you can call the employment law experts at Premier Legal on: 0845 070 0505 (Please note: Calls to this number will cost approximately 4p per minute plus your telephone company’s access charge) (Please note: Calls to this number will cost approximately 4p per minute plus your telephone company’s access charge) – if you don’t like 0845 numbers please feel free to call the head office in Nottingham on 0115 988 6211