UK minimum wage increases from 1 October

On the 1st of October 2013, changes came into force whereby the national minimum wage (per hour rate) has been raised. 

Changes are as follows:

  • The main rate for workers aged 21 plus has increased from £6.19 to £6.31.
  • The development rate for 18-20 year olds has increased from £4.98 to £5.03.
  • The development rate for 16-17 years olds has increased to from £3.68 to £3.72.
  • The rate for apprentices under 19 or in their first 12 months of apprenticeship has increased from £2.65 to £2.68.

“While these rate increases are fairly insignificant, it is a step in the right direction and we are expecting to see further reforms in the coming months,” says Pieter Carstens from 1st Contact Umbrella.

The government is said to be considering further initiatives, for instance giving tax breaks to companies who pay wages higher than the national minimum wage (NMW) or possibly even compelling companies to pay a higher minimum wage once they reach a certain profit threshold.

Paying any less than the minimum wage is illegal and tough action will be taken, including financial penalties and the “naming and shaming” of any employer who fails to pay the National Minimum Wage.

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