9 August 2011

The Minimum Wage 1st October 2011

The Minimum Wage 1st October 2011

The annual National Minimum Wage (Amendment) Regulations which increase the National Minimum Wage from the 1st October each year have now been laid before Parliament in draft form. Following the recommendations of the Low Pay Commission, they will provide for increases in the National Minimum Wage from 1st October 2011 as follows: 

• The adult rate will increase by 15p to £6.08 an hour;
• The rate for 18-20 year olds will increase by 6p to £4.98 an hour;
• The rate for 16-17 year olds will increase by 4p to £3.68 an hour;
• The rate for apprentices will increase by 10p to £2.60 an hour; and
• the accommodation offset will increase from £4.61 to £4.73 per day.

A separate set of draft regulations (the National Minimum Wage (Amendment) (No.2) Regulations 2011) will ensure that as from 1st October 2011 charges paid to a Higher Education Institution or Further Education Institution for living accommodation provided to a worker who is enrolled on a full-time higher education course or a full-time further education course with that Higher Education Institution or Further Education Institution will be taken into account (contrary to normal NMW rules) for NMW calculation purposes. The practical result will be to remove the cap (£4.73 per day from 1st October) from the "accommodation offset" which would otherwise apply.