Employment e-Brief – changes to the National Minimum Wage

It is that time of the year when changes to the National Minimum Wage (‘NMW’) have come into effect. Although normally there are only increases to the hourly rate to note, this year has seen important additional changes as well.

Firstly, there is now an apprentice rate if the apprentice is under 19 years of age and is in their first year of apprenticeship.

Secondly, the age bands have changed. The new age bands, and rates, that have come into effect from 01 October 2010 are:

• Workers aged 21 and over are entitled to £5.93 an hour (this age band has been lowered from workers aged 22 and over and the rate has been increased from £5.80 an hour);
• Workers aged between 18-20 are entitled to £4.92 an hour (this age band has been changed from 18-21 and the rate increased from £4.83 an hour);
• Workers aged between 16-17 are entitled to £3.64 an hour (this age band remains the same, but the rate increased from £3.57 an hour ).

It is important to note the new rates and the new age bands and ensure that workers are paid the correct NMW with effect from 01 October 2010.