Government gives go-ahead to minimum wage rise

12 May 2009



The National Minimum Wage will increase from this October, the government has announced, in plans which are expected to benefit around one million of the country's employees. The rate for workers over the age of 22 will rise from £5.73 per hour to £5.80, with other age brackets also set to see an increase.

"It protects them [low-paid workers] from exploitation and also creates a level playing field for business, making a huge contribution to the UK's economic success," commented Business Secretary Lord Mandelson. He added that the National Minimum Wage had been in place for a decade and remains one of the most important rights for the country's workers.

The changes have been recommended by the Low Pay Commission, which is believed to have carefully considered recent economic data. The hourly rate for 18 to 21-year-olds will be increased from £4.77 to £4.83, while those aged 16 and 17 will, by law, have to be paid £3.57 as opposed to the current £3.53.

Nicola Nicolaou, associate in the employment law practice group comments: "Whilst there is currently an exemption contained within the Employment Equality (Age) Regulations 2006 which provide that calculation of the National Minimum Wage by reference to age is not discriminatory, it will be interesting to see if, in time, one National Minimum Wage will be set irrespective of age.

Contact our employment law practice group on 01753 279029, complete the online enquiry form or email employmentlaw@bpcollins.co.uk, if you would like advice on any employment law matter.

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