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Adult minimum wage to increase but frozen for young people

The government announced this week that the national Minimum Wage will increase by 11p in October, taking the hourly rate of pay for adults to £6.19. The rate for apprentices will also increase by 5p to £2.65 an hour, but the rates applicable to 16 – 17 year olds and 18 – 20 year olds will remain unchanged; at £3.68 and £4.98 per hour respectively.

The 11 pence rise in the hourly rate for adult workers, put forward by the Low Pay Commission, equates to a 1.8% increase, around half the rate of CPI inflation. A full-time employee working 40 hours a week 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 1st October. Employers should be reminded that they face penalties should they fail to pay the national minimum wage and workers will be entitled to have arrears of wages re-paid at current rates.

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