National Minimum Wage October 2013

Tuesday, September 17th, 2013

BIS logo


We are repeating a series of articles on the UK’s National Minimum Wage, effective in less than one month’s time.  However, it is interesting to also report on a statement made by the Liberal Democrats last week.


Liberal Democrats – No Tax on Minimum Wage

Nick CleggIn a BBC Andrew Marr interview on the Sunday 15th September, Nick Clegg, deputy Prime Minister gave a flavour of the ‘tax fairness’ policies that the Liberal Democrats would bring to any future collation Government.  He said that he was committed personally, and as a party, to increasing the tax threshold to ensure that nobody in receipt of the National Minimum Wage paid income tax.


To be fair, the Liberal Democrats have probably been hugely instrumental in ensuring that the Personal Allowance increases to £10,000 from April 2014.  It is likely that it would not have been this way without their influence in the current Coalition Government.

His latest comment tells us that his party is committed to further increases to the Personal Allowance, to the point at which anyone earning at the National minimum Wage would be excluded from paying tax.  What kind of possible threshold does this bring to mind – £11,500 / £12,000?

Whether Mr Clegg or indeed his party will be part of any future Government, only the General Election in May 2015 will tell us.

Further Information


On 15 April 2013, Business Secretary Vince Cable announced that they were accepting most of the Low Pay Commission’s recommendations for National Minimum Wage Rate and Offset increases from October 2013.

The following rates are effective for pay periods on or after 01 October 2013:

NMW hourly rates

October 2012

October 2013

Workers age 16 – 17



Workers age 18 to 20






All other workers (Adult)



Accommodation Offset (daily rate)



The Statutory Instrument, which makes amendments to the National Minimum Wage Regulations 1999, was made in August 2013.

Further Information

Naming and Shaming

In a speech on 23 August 2013, Employment Relations Minister Jo Swinson said that the Department for Business, Innovation and Skills (BIS) were revising their strategy on National Minimum Wage compliance.  This will make it easier for Government to ‘name and shame’ employers who do not pay their employers at the NMW.

If workers feel they aren’t getting the minimum wage that they are legally entitled to then they should contact the free and confidential Pay and Work Rights Helpline on 0800 917 2368. Calls will be referred to HMRC to actively investigate any suspected non-payment of national minimum wage.

Further Information

The Agricultural Wages Board (AWB) in England and Wales

The AWB in England and Wales was an independent body set to regulate the minimum wage paid to agricultural workers.  The annual Agricultural Workers Order also set many terms and conditions of employment such as holiday and sick pay accrual and overtime rates which were fixed by grade.  The Enterprise and Regulatory Reform Act 2013 contained provisions to abolish the AWB in England and Wales (but not Scotland) and Statutory Order 2013/1455 actioned this provision with effect from 25 June 2013.  However, this Order provided that the current powers under the Agricultural Wages (England and Wales) Order 2012 continue until 30 September 2013.

From 01 October 2013, a single employment regime will apply across England and Wales.  Holiday and sick pay will be paid in accordance with statutory entitlements and there will be no separate statutory provision for overtime to be paid at a higher rate.

Further Information

 Minimum Wage

Guernsey FlagThe Minimum Wage (Guernsey) Law 2009 was enforced on 01 October 2010.  From this date, all qualifying workers have the right to be paid at the rate set by the States (of Guernsey), which also apply in Herm and Jethou.  The rates do not apply in Sark or Alderney.

In July 2013, the States approved the rates that are payable from the first pay reference period on or after 01 October 2013.  Note that there are only two main rates in Guernsey

Guernsey Minimum Wage

October 2012



Young Persons’ (16 – 17)



Adult (18+)



Accommodation Only Offset (weekly)



Accommodation and Food Offset (weekly)




The Guernsey Legislation Website should contain the Minimum Wage (Prescribed Rates and Qualifications) (Guernsey) Regulations 2013, though we are unable to find these at the time of writing this article.

Further Information

Isle of Man Minimum Wage

IOM flag

The Minimum Wage rates in the Isle of Man have remained unchanged since 01 November 2011, however, the Minimum Wage (Single Hourly Rate) Regulations 2013 amend the ‘Aged 18 or over’ rate from the first pay reference period on or after 01 October 2013:


Isle of Man Minimum Wage

November 2011

October 2013

Over Compulsory School Age (but under 17)



Aged 17



Development Worker



Adult (18+ but not Development Workers)



Accommodation Offset (hour / day)

96.25p / £5.50

96.25p / £5.50

Further Information

Jersey Minimum Wage

Jersey Flag

Whilst talking about Minimum Wages that apply from the pay reference period starting on or after 01 October 2013, it is worth mentioning that Jersey Minimum Wage increases are not effective until 01 April every year.


Further Information

Republic of Ireland Minimum Wage


ROI FlagWhilst talking about Minimum Wages that apply from the pay reference period starting on or after 01 October 2013, it is worth mentioning that the Minimum Wage rates in the Republic of Ireland would not be amended until 01 July every year.  The rates effective 01 July 2011 (the last time they were changed) are contained in the links in Further Information below.


Further Information



PrintFriendly and PDF

Bookmark and Share

Tags: , , , , , , , , , , , , , , , , ,

Comments are closed.

Search – Payroll Help

Social Media

Payroll Update 2013