New Minimum Wage Rates Announced

The Government has announced the annual increase in the National Minimum Wage. The adult rate, for workers aged 22 and over, rises from £5.52 to £5.73; the rate for 18-21 year olds will increase from £4.60 to £4.77; and the rate for 16 to 17 year olds rises from £3.40 to £3.53. The increases will take effect from 1 October 2008. The Government estimates that nearly one million low paid employees, 2 thirds of them women, will benefit from the increase.

John Bates, a Director at Peterborough law firm hc solicitors LLP and a member of the Employment Lawyers’ Association, commented:

“This year’s increase is less than the increase seen last year, and approximates to the level of inflation. That is welcome news, against a backdrop of increasingly tough action, including the first prosecution, being taken against employers who don’t comply with the minimum wage legislation. If in doubt, early advice can help employers stay on the right side of the regulation and avoid the traps and pitfalls.”

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This article has been prepared for general interest and information purposes only; it does not constitute legal advice and should not be relied on as such. While all possible care has been taken in the preparation of this article, no responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by the firm or the authors.