Increase in the National Minimum Wage for 2012/2013

An announcement from the Department of BIS has confirmed that the adult National Minimum Wage (NMW) rate will increase by 11p from £6.08 to £6.19 an hour on 1st October 2012. This follows the recommendations of the independent Low Pay Commission for this year’s NMW rates.

The Government has also confirmed that the minimum wage for young people aged under 21 will be frozen for 2012-13 in order to minimise barriers to job creation. With effect from 1st October 2012, the rate for 18-20 year olds will remain at £4.98 an hour, and for 16-17 year olds will remain at £3.68 an hour.

Business Secretary Vince Cable said:
“I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job in difficult circumstances.

In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.”

Author: Alice Heasman 

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