National Minimum Wage – Low Pay Commission’s proposals accepted by GovernmentMonday, May 18th, 2009
The Low Pay Commission (LPC) published its tenth National Minimum Wage Report on 12 May 2009, which included the following recommendations to take effect from October 2009:
- the National Minimum Wage (NMW) should increase
- from £5.73 to £5.80 – age 21+
- from £4.77 to £4.83 – age 18 to 21
- from £3.53 to £3.57 – age 16 and 17
- the adult rate should apply from age 21
- the accommodation offset should increase from £4.46 to £4.51 per day
- a minimum wage for apprentices should be introduced under the NMW framework, with recommendations
from the LPC to be included in the 2010 Report
- additional compliance and enforcement measures should be introduced, including
- a “name and shame” policy to expose those employers who show wilful disregard for the minimum wage
- extra funds for HMRC to allow more criminal prosecutions
- measures to tackle underpaying in the informal economy.
The Department for Business (BERR) confirmed that the Government had accepted the proposed new rates and that the adult rate will be extended to 21-year-olds from October 2010. Proposals will be developed on making available information about employers who have shown wilful disregard for the minimum wage laws and to address the non-payment of the NMW in the informal economy.
Almost one million workers are expected to benefit from the October 2009 increase in the minimum wage.
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