Minimum wage increase
In March this year the government announced the national minimum wage is to rise effective from 1st October 2014.
The national minimum wage sets minimum hourly rates that employers must pay their workers. The increases will benefit up to a million workers. The Department for Business, Innovation & Skills has announced the national minimum wage rates from 1 October 2014 are as follows:
- the main adult rate (for workers 21 and over) will increase by 19p to £6.50 an hour
- the rate for 18-20 year olds will increase by 10p to £5.13 an hour
- the rate for 16-17 year olds will increase by 7p to £3.79 an hour
- the rate for apprentices* will increase by 5p to £2.73 an hour
*Apprentices aged 19 or over who have completed one year of their apprenticeship are entitled to receive the national minimum wage rate applicable to their age.
Please also note that the definition for ‘workers’ can also sometimes include self-employed people. So if you provide any self-employed agents with contracts, they could meet the criteria of ‘workers’ for national minimum wage.
It makes no difference to a worker’s entitlement to the national minimum wage whether they work for you full time or part time, or whether they are an agency worker, a temporary or casual worker, a piece worker or a home worker.
Paying national minimum wage – further help
If you need more help and advice about paying the national minimum wage, please contact the Stafford & Co payroll team