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New Minimum Wage Rates

31st July, 2012

The Government has announced the new minimum wage rates for 2012/2013, which will take effect as of 1 October 2012. The new rates were set out by the Low Pay Commission in their 2012 report and its recommendations have recently been accepted by the Government.

The rates will be as follows:

  • The adult hourly rate will increase from £6.08 to £6.19;
  • The youth development rate for 18-20 years will remain at £4.98;
  • The youth rate for workers aged 16 and 17 will remain at £3.68; and
  • The apprentice rate, for apprentices under 19 or those 19 or over and in the first year of their apprenticeship, will increase from £2.60 to £2.65 per hour.

A new rate will also be introduced for employers providing their employees with accommodation. Employers are able to offset a certain proportion against employee’s national minimum wage pay to account for accommodation and from 1 October 2012 the amount which can be offset will rise from £4.73 to £4.82 per day.

The decision to keep youth rates at the same level was recommended by both the Department for Business, Innovation and Skills and the Chartered Institute of Personnel and Development. Business Secretary Vince Cable explained, I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job in difficult circumstances. In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run”.

For further information or advice relating to the National Minimum Wage provisions, please contact Claire Brook on 01244 405575 or email [email protected].

 

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