New Minimum Wage Rates

The Government has now accepted recommendations for the National Minimum Wage rates to be increased for 2014/2015.

Recommendations in respect of such increases were put forward in the Low Pay Commissions’ annual report for 2014 and will come into force on 1st October 2014.

The following increases include:

  • The National Minimum Wage rate for adults (workers aged 21 and over) will increase from £6.31 to £6.50 per hour.
  • The National Minimum Wage rate for workers aged 18-20 will increase from £5.03 to £5.13 per hours.
  • The National Minimum Wage rate for 16-17 year old workers will increase from £3.72 to £3.79 per hour.
  • The rate for apprentices under 19, or those who are in their first 12 months of apprenticeship, will increase from £2.68 to £2.73 per hour.

The accommodation offset will also increase from £4.91 daily to £5.08 per day.

There are various financial implications which an employer may face should a breach of the National Minimum Wage occur. As of April 2009, an employer could be fined up to a maximum of £5,000 for such a breach. The Government has since announced (in January 2014) that the maximum penalty will increase from £5,000 to a maximum penalty of £20,000. This is an increase of 50% of unpaid wages owed to workers.

These new financial limits came into force on 1st March 2014.

If you would like any further advice on this or any other Employment Law issue, please contact Natasha Moore or call 01234 270600.