Once again National Minimum Wage (NMW) rates increase from 1st October 2012.
The adult rate for National Minimum wage will increase by less than 2 per cent and there will be no increase at all for 16-20 year olds who are not on apprenticeship schemes.
There are a number of reactions to these slight changes.
The 11 pence rise in the hourly rate for adult workers equates to a 1.8% increase, around half the rate of CPI inflation. For a full-time employee working 40 hours a week, today’s increase will see their annual wage increase by £228.80 to £12,875.
Employers will need to ensure that employees that are eligible for the increases are paid at the new rates from today. Should companies fail to pay the National Minimum Wage, they can face penalties and will also be required to pay employees arrears of wages at current rates.
| From 1st October 2011 | From 1st October 2012 | ||
|---|---|---|---|
| 21+ |
£6.08 |
21+ |
£6.19 |
| 18-20 |
£4.98 |
18-20 |
£4.98 |
| 16-17 |
£3.68 |
16-17 |
£3.68 |
| Apprentices |
£2.60 |
Apprentices |
£2.65 |
| Accommodation Offset |
£4.73 / day |
Accommodation Offset |
£4.82 / day |
All this happened last week – are you up to-date on the National Minimum Wage?
photo credit: incurable_hippie via photopin cc