An announcement from the Department of BIS has confirmed that the adult National Minimum Wage (NMW) rate will increase by 11p from £6.08 to £6.19 an hour on 1st October 2012. This follows the recommendations of the independent Low Pay Commission for this year’s NMW rates.
The Government has also confirmed that the minimum wage for young people aged under 21 will be frozen for 2012-13 in order to minimise barriers to job creation. With effect from 1st October 2012, the rate for 18-20 year olds will remain at £4.98 an hour, and for 16-17 year olds will remain at £3.68 an hour.
Business Secretary Vince Cable said:
“I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job in difficult circumstances.
In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.”
Author: Alice Heasman
Adrian, a highly experienced lawyer, founded Lawspeed in 1997. He is responsible for developing our extensive portfolio of products and services, including the widely used Lawspeed contract templates. Adrian is an expert on “recruitment law” and specialises in contracts, regulatory compliance, employment status and dispute handling. He is chair of the trade body the Association of Recruitment Consultancies, the only lawyer lead recruitment trade body in the UK. Adrian and his co-director Ravi devised Standards in Recruitment as a vehicle for helping drive up standards and compliance in the industry.
Adrian is our lead in discussions with the government over regulatory evolution. Apart from assisting with client support, Adrian’s primary role is research and development into methods of business delivery, our latest service Proterms being his most recent project. Adrian heads our IR35 lawyers team.