The National Minimum Wage (NMW) has increased by 11p today, Monday 1st October 2012. The new hourly rate of pay for adults (over 21 years) is now Â£6.19.
The rate for apprentices also increases by 5p today, taking the hourly rate of pay to Â£2.65 an hour.
The NMW rates applicable to 16 – 17 year olds and 18 – 20 year olds remain unchanged however; at Â£3.68 and Â£4.98 per hour respectively.
The 11 pence rise in the hourly rate for adult workers equates to a 1.8% increase, around half the rate of CPI inflation. For a full-time employee working 40 hours a week, today’s increase will see their annual wage increase by Â£228.80 to Â£12,875.
Employers will need to ensure that employees that are eligible for the increases are paid at the new rates from today. Should companies fail to pay the National Minimum Wage, they can face penalties and will also be required to pay employees arrears of wages at current rates.
By Victoria Mitchell, Employment Lawyer in Lancashire