National Minimum Wage to Increase

 The Government has confirmed that from 1st October 2009 the National Minimum Wage will increase as follows:

• Over 22 year old rate will increase from £5.73 to £5.80;
• 18 to 21 year old rate will increase from £4.77 to £4.83;
• 16 & 17 year old rate will increase from £3.53 to £3.57.

The Government made the decision after the Low Pay Commission (LPC) made their recommendations in a report released yesterday.  The report, which is usually released in February each year, had been delayed to allow the Commission time to consider an extra two months economic data in light of the current recession.

Business Secretary Lord Mandelson said:
“The Low Pay Commission has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate. The government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October.”

The Department for Business, Enterprise and Regulatory Reform (BERR) has stated that nearly one million people will benefit from the increase, including around 44,000 workers in Northern Ireland.

Citizens Advice, which runs the National Minimum Wage Helpline for Northern Ireland on behalf of BERR, have welcomed the increase and acknowledged the caution necessary to balance the burden put on local businesses to meet rising wage costs against the need for low paid workers to increase their income.

The Government has also accepted recommendations from the LPC that 21 year olds should be entitled to the higher rate of minimum wage which is currently applied when a worker turns 22, this change to the legislation will be implemented from 1st October 2010.

For further information about the minimum wage legislation please contact the Helpline in confidence on 0845 6500 207 or visit our website www.nmwadvice.co.uk