Wednesday, September 14, 2011

Minimum Wage to Increase in October

National Minimum Wage (NMW) is increasing effective from 1st October 2011. The age at which you become entitled to the main rate was reduced from 22 to 21 on 1st October 2010. 

 The apprentice rate was introduced on the same date. From 1st October 2011 the minimum hourly rates are being raised as follows:
  • £5.93 to £6.08 an hour for workers aged 21 and over 
  • £4.92 to £4.98 an hour for workers aged 18 to 20 
  • £3.64 to £3.68 an hour for workers aged 16 to 17 
  • £2.50 to £2.60 an hour for apprentices 
This means that a full time adult employee minimum salary for a 52 week year and a 40 hour work week will now be 40 x 52 x 6.08 = £12,646.40.

Most workers in the UK over school leaving age are legally entitled to be paid at least the NMW and all employers have to pay it to you if you are entitled to it. It makes no difference:
  • if you are paid weekly or monthly, by cheque, in cash or in another way 
  • if you work full time, part time or any other working pattern 
  • if you work at your employer’s own premises or elsewhere 
  • what size your employer is 
  • where you work in the UK 
You are entitled to the NMW even if you sign a contract agreeing to be paid at a lower rate. This is regardless of whether you sign of your own free will or because your employer persuades or makes you. The contract will have no legal effect and you must still be paid the proper rate.

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