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National Minimum Wage rates increase Print E-mail
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National Minimum Wage rates increase
Government's response to individual recommendations in the Low Pay Commission's 2010 report:
2009 NMW
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National Minimum Wage - Written Ministerial Statement  from The then Minister for Business, Innovation and Skills,  Pat McFadden, W'ton SE: 
 
The Low Pay Commission's 2010 report recommended from 1st October 2010:
  • adult hourly rate of the minimum wage should increase from £5.80 to £5.93.
  • development rate (which will cover workers aged 18-20 years) rises from £4.83 to £4.92
  • rate for 16 to17-year-olds moves from £3.57 to £3.64, from 1st October 2010.
  • there should be a single apprentice minimum wage rate of £2.50 per hour for those apprentices currently exempt from the national minimum wage; that is, all those under the age of 19 and those aged 19 and over in the first 12 months of their apprenticeship. 

The Government accepts these recommendations.

 
 
The National Minumium 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
 
next increase due 1st October 2010
                     21+yrs       18-20yrs   16-17yrs
Oct-2010  £5.93          £4.92        £3.64  
plus new apprentice rate £2.50/hour
The apprentice minimum wage is for those apprentices currently exempt from the national minimum wage. That is, all those under the age of 19 and those aged 19 and over in the first 12 months of their apprenticeship. The wage should cover both those employed on traditional contracts of apprenticeship and employed apprentices on Government-supported level 2 and 3 schemes. All hours of work and training (relating to both on-the-job and off-the-job) under an apprenticeship should be counted as hours for which the apprentice wage must be paid. All hours should be paid at the same wage rate. Non-employed apprentices are excluded from the apprentice minimum wage and continue to be exempt from the national minimum wage. 
 
 - The minimum wage can be enforced by complaint to HM Revenue and Customs (HMRC) National Minimum Wage Enforcement Unit, which has a mere 100 inspectors at its disposal.
  
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 site and on the Inland Revenue's.
 
 
- 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.
 



 
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