Minimum wage rates are about to increase by 2.5% which, it is estimated, will raise the wages of about 900,000 workers. The doubts last year about whether proposed increases would be introduced at all are not there this time.
Assuming the relevant statutory instrument is passed in time the rates from 1st October 2011 will be:
- Workers aged 21 and over £6.08 per hour (up from £5.93)
- Workers aged 18 to 20 £4.98 per hour (up from £4.92)
- Workers aged 16 to 17 £3.68 per hour (up from £3.64)
- Apprentices £2.60 per hour (up from £2.50)
As before it remains the employer’s responsibility to keep sufficient records to show that the minimum wage has been paid.
At the beginning of the year there was a change to the National Minimum Wage rules meaning that any subsistence costs for travelling to a temporary workplace no longer form part of the worker’s pay, for the purposes of calculating the minimum wage. Previously some employers had used travel and subsistence schemes as part of worker’s pay as a means of saving tax and National Insurance Contributions, whilst still complying with the minimum wage rules.
The coalition Government has confirmed its support for the minimum wage, and made it clear that it rejected the suggestion in a private members bill that disabled people should be able to opt out and work for a lower figure.
We are expecting guidance shortly to clarify when individuals performing work experience, including interns, are entitled to the minimum wage.
