Minimum Wage comes into force
More than one million of Britain’s lowest paid workers will receive an above-inflation increase to their wages following the introduction of the new National Minimum Wage, effective from today.
The rate rise to £6.50 per hour, the first real terms cash increase since 2008, follows the recommendations from the independent Low Pay Commission (LPC) in March this year and the call for faster, affordable rate rises by Business Secretary Vince Cable.
The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, are:
19p (+3%) increase in the adult rate (from £6.31 to £6.50 per hour)
10p (+2%) increase in the rate for 18 to 20-year-olds (from £5.03 to £5.13 per hour)
7p (+2%) increase in the rate for 16 to 17-year-olds (from £3.72 to £3.79 per hour)
5p (+2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
The rate rise will mean more than one million people are set to see their pay rise by as much as £355 a year.