Financial & Legal News

Changes to National Minimum Wage 2013

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The Low Pay Commission’s recommended changes to the National Minimum Wage rates came into force on 1st October 2013. Here is a quick recap of the changes you will see in your pay packet, or what you will be paying your staff:

  • the adult rate will increase by 12p to £6.31 an hour
  • the rate for 18-20 year olds will increase by 5p to £5.03 an hour
  • the rate for 16-17 year olds will increase by 4p to £3.72 an hour
  • the apprentice rate will increase by 3p to £2.68 an hour.
  • the accommodation offset increases from the current £4.82 to £4.91

Last month, the Conservative Government suggested it was looking into ways to further increase the National Minimum Wage. Ideas included tax breaks for companies who agree to pay all staff a wage level above minimum, or forcing companies with a certain profit size to increase their minimum wage.

However, there is unsurprising resistance from within the Cabinet amid fears that any additional increases in National Minimum Wage would alienate business leaders.

The shadow Treasury are looking at alternative options to work alongside Living Wage and believe that more targeted policies are required, focusing on regions and specific industries.

For more information on how National Minimum Wage affects you or your business contact Pearson Solicitors and Financial Advisers.

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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