National Minimum wage set for October increase

The government has announced this week that the National Minimum Wage (NMW) for workers aged 22 and over will rise by 7p, or 1.2%, to £5.80 an hour. The new rate will come into effect on October 1^st 2009 with the rate for 18-21 year-olds rising from £4.77 to £4.83, while for 16 and 17 year olds, the statutory rate will increase from £3.53 to £3.57. From October 2010, the adult statutory minimum rate will also apply to 21-year-olds. All apprentices aged 16-18, and those aged 19 and over in their first year as an apprentice, are currently exempt from being paid the NMW, although employers are required to pay apprentices a minimum of £80 per week, which will increase to £95 per week from August 2009. The Low Pay Commission has recently reviewed the apprenticeship exemption from the NMW and has recommended that a National Minimum Wage for apprentices should be introduced.