New National Minimum Wage Rates increase from 1 October

The National Minimum Wage (NMW) goes up again on 1 October. The new hourly rates are as follows:

• Workers aged 21 and over £6.08
• Workers aged 18-20 £4.98
• Workers aged 16 and 17 £3.68
• Apprentices* £2.60
*Apprentices should be aged 16-19 or over 19 but in the first year of their apprenticeship.

The NMW applies not only to employees, but also to casual staff, agency staff and home workers, and the above increases apply immediately from 1 October regardless of the date of the employer’s annual staff pay reviews.

The above rates do not apply to

• Students on courses not higher than a first degree course who are placed with an employer for up to one year as part of their course
• Post-graduate students at a UK higher education institute doing work experience for up to one year as part of their course
• People living as part of a family sharing in household work
• Voluntary workers receiving only reasonable expenses or benefits in kind

Penalties for not paying the NMW are severe, and employers are required to keep records (for a minimum of six years) to prove they are complying with the law.  bira members have exclusive access to CybHR – an online resource with a wealth of information on Employment Law and Health & Safety. Members wishing to find out more about the NMW can log in to the CybHR website here. Alternatively, members can contact the Information Office on 0121 446 6688 for advice.