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Government confirms minimum wage increase

The Government has confirmed that the recommended rises in the national minimum wage made by the Low Pay Commission will come into effect in October 2010.

The new rates are: £5.93 per hour for low paid workers aged 21 and over, up from;£5.80; £4.92 per hour for 18-20 year olds, up from £4.83; and £3.64 per hour for 16-17 year olds, up from £3.57.

For the first time there will also be an apprentice minimum wage of £2.50 per hour. The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.

The accommodation offset will rise from £4.51 per day to £4.61.

At Simple HR we feel that a 2% rise in the minimum wage is about right when inflationary pressures on business and individuals are balanced, hopefully signalling a sensible approach to NMW increases.

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