Increase in National Minimum Wage
EMB Ltd, the organisation responsible for delivering the Business Link advisory service across the East Midlands, is reminding local employers that the statutory national minimum wage for workers and/or apprentices is being increased as of 1 October 2010.
From 1 October 2010, new national minimum wage (NMW) rates will come into force. The NMW applies to nearly all workers and sets an hourly rate below which employers must not allow pay to fall.
For pay reference periods (PRPs) beginning on or after 1 October 2010, employers will have to pay all eligible workers the following:
- £5.93 an hour to workers aged 21 and above ('the main rate')
- £4.92 an hour to workers aged 18-20
- £3.64 an hour to workers aged below 18 who are no longer of compulsory school age
It's important to note that the age threshold for the main rate is going to fall from 22 (as it is currently) to 21.
New entitlement to the NMW for apprentices
For PRPs beginning on or after 1 October 2010, employers will have to pay at least £2.50 an hour to apprentices who are:
- under the age of 19
- aged 19 or over and in the first year of their apprenticeship
Currently such apprentices are not entitled to the NMW. To qualify to receive the NMW, the apprentice must either:
- work under a contract of apprenticeship
- be employed on a government-funded training scheme that is treated as an apprenticeship for NMW purposes
These schemes include: Apprenticeships and Advanced Apprenticeships
Employers will also be able to offset an amount of £4.61 per day from the NMW for each day that a worker is provided with living accommodation.
To access FREE national minimum wage regulation information and advice, contact Business Link East Midlands on 0845 058 6644, email info@businesslinkem.co.uk or visit www.businesslink.gov.uk/eastmidlands/nmw
Posted by: Business Link East Midlands
