News

The Government yesterday announced the annual increase to the National Minimum Wage (NMW) to apply from 1 October 2008.

Implications 

From 1 October 2008, you will have to ensure that employees' wages are adjusted to reflect the new rates. The Government yesterday announced the annual increase to the National Minimum Wage (NMW) to apply from 1 October 2008.

Details 

The proposed increases to the current NMW bands from 1 October 2008 are as follows:

RATE                              CURRENT NMW                          PROPOSED NMW

Adult                                £5.52                                              £5.73

18-21 year olds             £4.60                                              £4.77

16-17 year olds             £3.40                                              £3.53

The level of increase is substantially smaller than that seen in 2007, and roughly matches the current rate of inflation. However, the new rates will boost the pay of almost a million workers and will mean the NMW has increased by almost 60% since it was first introduced in 1999.