National Minimum Wage rates increase
from 1stOctober 2013:
The Living Wage is £7.65/hour outside London.; this will be updated in November 2014
Paying the living wage would mean a £254 million boost to public finances from the West Midlands
Big savings – £254million – could be made by the public purse if the West Midlands’ 473,000 low-paid workers received a pay rise and were paid the living wage, according to research published by the Midlands TUC
The National Minimum Wage was introduced AS LAW by the Labour government in April 1999. It has been uprated as follows:
NMWage 22+yrs 18-21yrs 16-17yrs
Apr-99 £3.60 £3.00 none
Jun-00 £3.70 £3.20 none
Oct-01 £4.10 £3.50 none
Oct-02 £4.20 £3.60 none
Oct-03 £4.50 £3.80 none
Oct-04 £4.85 £4.10 £3.00
Oct-05 £5.05 £4.25 £3.00
Oct-06 £5.35 £4.45 £3.30
Oct-07 £5.52 £4.60 £3.40
Oct-08 £5.73 £4.77 £3.53
Oct-09 £5.80 £4.83 £3.57
21+yrs 18-20yrs 16-17yrs apprentice rate
Oct-2010 £5.93 £4.92 £3.64 £2.50/hour
Oct-2011 £6.08 £4.98 £3.68 £2.60/hour
Oct-2012 £6.19 £4.98 £3.68 £2.65/hour Living Wage £7.45 in Midlands
- current rates
Oct-2013 £6.31 £5.03 £3.72 £2.68/hour
next rise is due in Oct-2014
The accommodation offset increased from £4.82 to £4.91 in October 2013.
It has been announced (15 -1-2014), that fines for failing to pay the minimum wage will be quadrupled from £5,000 to £20,000 in a bid to protect workers' rights. It seems that today we have come a step closer to promoting equality and a safe working environment. It was announced by Vince Cable, the Business Secretary that any employer not paying their workers the minimum wage may now face a fine of £20,000 in comparison to the previous fine of £5,000.
These measures spectacularly change the Tory narrative on the minimum wage. It wasn’t so long ago that Tories were suggesting the government allow the NMW to “wither on the vine”. As we approach the next election, the message has changed. Now the government is looking at measures to help shame wrongdoers and highlight what a serious offence it is to pay people less than the minimum salary rate.
TUC General Secretary Frances O’Grady said:
“The TUC has long argued that successive governments have been soft on minimum wage dodgers. The plans announced today to quadruple penalties for rogue bosses who cheat staff out of the minimum wage should make employers think twice before illegally underpaying their staff.
“It’s great that the penalties for flouting the minimum wage have been raised and that it’s easier to name and shame offending employers. It’s crucial now that HMRC is given the resources they need to enforce these new rights properly.”
-if you think that you are not getting the national minimum wage; you can complain to the HM Revenue and Customs (HMRC) National Minimum Wage Enforcement Unit, which has a mere 100 inspectors at its disposal.
Phone the Pay and Work Rights Helpline on 0800 917 2368
HMRC NMW helpline 0845 6000 678 , open Monday to Friday 9am to 5pm. Calls charged at local rate.
All calls are taken in strict confidence. Callers can be assisted in 30 different languages.
- Only complaints that name the workers involved receive feedback from HMRC but complaints from third parties and anonymous complaints are also investigated.
- HMRC has the authority to impose enforcement notices and penalty notices on employers who break the law. An enforcement notice requires the employer in question to pay the NMW. Penalty notices are imposed on employers who fail to comply with enforcement notices. A penalty notice imposes a charge of over £200 per underpaid worker. HMRC can also prosecute employers, but this is used as a last resort because the penalty notice system generally works and is quicker than taking a case to court.
The TUC has produced a minimum wage calculator - Click HERE to see if you are getting enough?
More information on the government's HMRC website
other info on government's website
- The TUC estimates that more than 150,000 workers are still underpaid so there is still more to be done. The TUC would like to see a new focus on enforcing the minimum wage for migrant workers, who find it particularly difficult to get their rights; the creation of a new power for trade unions to take representative and group actions to employment tribunal rather than having to rely on naming individual workers; and a sharpening of the incentives to pay the minimum wage by ensuring that all employers who are caught underpaying are subject to a financial penalty.
A new poll of 1,163 people in full and part time work, as part of the Unions21 Fair Work Commission has found three quarters of working people (74%) would be more likely to buy products or services from a company that pays its workforce the Living Wage rather than the Minimum Wage.
The poll also found:
-83% of working people think the current Minimum Wage isn't enough to meet Living Costs.
-71% of UK employees – 21 Million workers – report that their wages have fallen in real terms over the last two years.
-A quarter of workers say the decisions as to 'who is paid what' in their workplace are unfair.
-71% would support a cap on bonuses at double total base salary.
To read more visit: www.fairworkcommission.co.uk
National Minimum Wage Helpline on Tel 0845 6000 678 lines are open from 9am- 5pm, Monday to Friday.