Fact Service September 2011

Issue 39

Minimum wage rises

The minimum wage rises from 1 October. The adult rate, payable at age 21, rises by 2.5% to £6.08 an hour from £5.93.

For 18-20 year olds the hourly rate only rises by 1.2% to £4.98 from £4.92 an hour and the development rate for 16- and 17-year-olds rises by just 1.0% to £3.68 an hour from £3.64.

The minimum wage for apprentices, which was introduced in 2010, rises by 10p an hour or 4% to £2.60 an hour. This is for apprentices who are under 19 or for older workers in the first year of their apprenticeship.

Under the national minimum wage legislation, the provision of accommodation by the employer is the only benefit in kind that can count towards a worker’s national minimum wage pay. The accommodation offset is increased from £4.61 to £4.73 a day from October.

www.lowpay.gov.uk/lowpay/press/Press_Release_LPC_2011_Report.DOC

www.lowpay.gov.uk/lowpay/report/pdf/Revised_Report_PDF_with_April_date.PDF