NATIONAL MINIMUM WAGE
Government approves new minimum wage rate
The government has announced that the adult rate of national minimum wage will rise from £5.52 to £5.73 on 1 October 2008.
The rate for 18-21 year olds will also increase from £4.60 to £4.77.
The 16-17 year old rate will rise from £3.40 to £3.53.
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The government has also boosted funding for enforcement of the NMW and is planning "tough new penalties" for rogue employers who underpay staff as part of the Employment Bill, now before the Parliament.
A final word
"This increase means that the minimum wage will have risen by 59% since it was introduced in April 1999 - almost double the expected growth in prices over the same period. Despite many predictions to the contrary, job numbers in the industries most affected by the minimum wage have grown and grown significantly over the same period." - Paul Myners, chair of the Low Pay Commission.
Want to know more?
Department for Business Enterprise and Regulatory Reform: You can download details of the announcement of the latest hike in the minimum wage by accessing the DTI web site. Web: www.berr.gov.uk/employment/pay/national-minimum-wage/index.html.
Directgov: The government site provides an easy-to-use guide to UK employment law, including minimum wage regulations. Web: www.directgov.gov.uk.
Low Pay Commission: The LPC was established as a result of the National Minimum Wage Act 1998 to advise the Government about the national minimum wage. Web: www.lowpay.gov.uk.
Incomes Data Services: Visit the national minimum wage section on the IDS web site for research, analysis and an overview of the legislation. Web: www.incomesdata.co.uk.