Apprentice Minimum Wage introduced
As we see happen every year, the National Minimum Wage rates have been reviewed by the Low Pay Commission and these are set to increase from October 1st, 2010. Brendan Wincott, mhl support’s Employment Law Compliance Officer, explains to us what the 1st October 2010 changes will bring.
In addition to the increase in the National Minimum Wage, this year we are expecting some slight alterations to the different age bands for which the National Minimum Wage is payable and a new rate introduced for apprentices.
Brendan explained that “the first thing to note is that the applicable National Minimum Wage rates are increasing, but alongside this, there is also a lowering to the age rates at which a person becomes entitled to the National Minimum Wage. As such, we will see the new National Minimum Wage of £5.93 apply from 1st October 2010 to those aged 21 or over, as opposed to the previous age of 22. In addition, this will also reduce the age range for the next rate of applicable National Minimum Wage to 18 to 20 year-olds inclusive, with their National Minimum Wage rate increasing to £4.92 per hour. Finally, the 16 to 17 year old rate will also increase to £3.64 per hour.”
However, Brendan went on to add “in addition this year, we are also set to see for the first time, an introduction of a new National Minimum Wage rate for apprentices for those not entitled to any of the ordinary National Minimum Wage rates. Currently, apprentices are not entitled to the National Minimum Wage if they are under 19 or if they are over 19 but under 25 and during their first year of apprenticeship. However, from 1st October 2010, we will see these individuals entitled to a new Apprentice National Minimum Wage rate of £2.50 per hour.”
When talking more about the minor changes, Brendan also continued to explain that “the National Minimum Wage accommodation offset allowance is also increasing from £4.51 per day up to £4.61 from the 1st October 2010.”
Brendan advised that employers start budgeting now for the new National Minimum Wage rates, particularly if you currently employ apprentices.
If you want to learn more about these latest changes to the National Minimum Wage and are an existing client, please call one of the team today on 08453 100 999 quoting your PCN number. If you are not already a client, but are interested in learning more about the services mhl provide or have a query relating to the National Minimum wage, please call Katy Vaughan today on 08453 100 600 for your free no-obligation consultation.
This News Release is intended to provide a general overview and discussion of the subject matter. It is not however, intended to give advice or to act as a substitute to taking legal advice from our Support Line in any specific situation. mhl accepts no liability or responsibility for the information contained within this news release. If you would like specific advice about this subject matter, please contact one of the Employment Law Team today on 08453 100 999.
