The government has approved a rise in the National Minimum Wage to £6.50 per hour, with more than 1 million people set to see their pay rise by as much as £355 a year.
The rise will take effect on 1 October 2014, as the Government has accepted in full the independent Low Pay Commission’s recommendations for 2014, including plans for bigger increases in future than in recent years.
The Low Pay Commission (LPC) has said the rise, the first real terms cash increase since 2008, is manageable for employers and will support full employment.
The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, will be:
- a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
- a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
- a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
- a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
Employers are reminder to check that they meet the National Minimum Wage legislation, and if in doubt they should contact us immediately.
Where we run your payroll, Nicolson Accountancy or Payroll Scotland will try to identify any employees who are paid below the new rates and increase their pay automatically to ensure full complaince, but the onus still lies with the employer to meet the legislation.
The National Minimum Wage legislation
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law.
It doesn’t matter how small an employer is, they still have to pay the minimum wage.
The minimum wage rate depends on a worker’s age and if they’re an apprentice. Use the National Minimum Wage calculator to check if the minimum wage has been paid.
Workers can check if:
- they’re getting the minimum wage
- an employer owes them payments from past jobs
Employers can check if:
- they’re paying the minimum wage
- they owe a worker payments from past jobs
There is also guidance on working out the minimum wage for different types of work.
