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The national minimum wage for adults is to rise to £5.80 an hour from October 2009. The government has accepted the Low Pay Commission’s recommendation of a 7 pence increase from £5.73 to £5.80 from October 2009. Other hourly rates are also to rise. The rate for 18 to 21-year-olds will increase from £4.77 to £4.83, while for 16 and 17-year-olds the rate will go up to £3.57 an hour from £3.53. In addition to the rate changes that will come into effect this year, the government has said that, as from October 2010, the adult rate of the minimum rate will be extended to include 21-year-olds. The date set for the submission of the LPC’s recommendations on the new rates for the minimum wage was moved from February to May in order to allow Commissioners to take the latest economic evidence into account during their deliberations. The LPC also proposed that information should be made available about those employers who have shown a wilful disregard for the minimum wage laws. The government said it would look at the practical issues involved. George Bain, the chairman of the LPC, commented on the decision: “These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage. We believe that the Low Pay Commission’s recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers’ jobs as well as their earnings.” Lord Mandelson, the Business Secretary, added: “The Low Pay Commission has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate. “The government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October.”
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Friday, 15 May 2009 | 1237 Hits |
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