From 1st October 2009, the national minimum wage will increase from £5.73 to £5.80 per hour. A recruiter or umbrella company whose rates fall below such levels will be advised to address these matters with clients, unless there is already clear provision within contracts for an increase in rates to account for such costs.
Payment of the correct level of the national minimum wage is also significant following the increases in enforcement powers and penalties for non payments, earlier this year.
October will also see an increase in the maximum cap on a week’s earnings for the purpose of calculating statutory redundancy payments. A week’s wages had previously been capped at £350 per week. However, as announced in the last budget for redundancies which take effect after 1st October 2009 the maximum weeks wage shall increase to £380 per week.