Minimum wage increase

The Government has announced that the national minimum wage for adults will increase on 1st October 2011 from £5.93 to £6.08 per hour – an increase of 15p.The increase is 2.5% below the rate of inflation.

Vince Cable (the Business Secretary) commented that more than 890,000 of Britain’s lowest-paid workers will gain from these changes, that they are appropriate and reflect the current economic uncertainty whilst at the same time seeking to protect the lowest-paid workers in the UK.

Additionally, the minimum wage for 18 to 20 year olds will increase by 6p to £4.98 an hour. The rate for 16 to 17 year olds will rise by 4p to £3.68 an hour, while for apprentices it will go up by 10p to £2.60 an hour.

AWR final guidance published today
HR v FD – the AWR divide