Friday, 24 September 2010

Minimum Wage rises from October 1st.

The minimum wage rises from 1 October. The adult rate will rise by 2.2% to £5.93 an hour from £5.80. In
addition, the adult rate becomes payable at aged 21 not 22 years of age. For 18-20 year olds the rate rises by 1.9% to £4.92 an hour and the development rate for 16- and 17-year olds rises by 2.0% to £3.64 an hour.
  In a new move, apprentices currently exempt from the national minimum wage regulations become
covered, although the starting rate is pitifully small at a £2.50 an hour rate. This is for apprentices who
are under 19 or older workers in the first year of their apprenticeship. This change should make apprentice pay across the UK easier to administer and subject to better enforcement arrangements.
  The wage should cover both those employed on traditional contracts of apprenticeship and employed
apprentices on government-supported Level 2 and 3 schemes.
  In England, transitional arrangements are in place so that current apprentices retain a contractual
entitlement to a minimum of £95 a week for the remainder of their apprenticeship or until they would
become eligible for the National Minimum Wage.
  Under the national minimum wage legislation, the provision of accommodation by the employer is the only benefit in kind that can count towards a worker’s national minimum wage pay. The accommodation offset is increased from £4.51 to £4.61 a day from October.

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