Business News
The Minimum Wage increase and your business
The National Minimum Wage rate will increase in October 2010 with the hourly rate for workers aged 21 and over rising to £5.93 an hour, as well as a minimum wage for apprentices being introduced.
The rate increase in full:
For workers aged 21 and over: currently £5.80, rising to £5.93
For workers aged 18 – 20: currently £4.83, rising to £4.92
For workers aged 16 – 17: currently £3.57, rising to £3.64
This rise reflects an increase of almost 2% within each age band; these new rates also confirm that the adult minimum wage will now apply to 21 year olds, whereas previously it had been 22.
For the first time, a minimum wage for apprentices will also be introduced, fixed at £2.50 an hour. This new rate will apply to all apprentices under 19 and for those aged 19 or over who are in their first year of the apprenticeship.
The low pay commission has campaigned for a long time to introduce the minimum wage for apprentices; however the figure of £2.50 has been viewed by many as somewhat derisory.
The new government has not indicated any proposals to change the National Apprenticeship Scheme so employers should take advantages of the provisions in the scheme where possible. The minimum wage of £2.50 certainly gives employers plenty of scope to maximise their workforce through apprentice workers.
