Tax & Accounting News

Minimum Wage Set To Rise In October

26/05/2009

The national minimum wage for adults will increase to £5.80 an hour from October, it has been announced.

The government has accepted the Low Pay Commission’s recommendation of a 7p increase from the previous rate of £5.73. The hourly rate for 18 to 21-year-olds will also increase from £4.77 to £4.83, while for 16 and 17-year-olds, the rate will go up to £3.57 an hour, from £3.53.

The government has also stated that from October 2010, the adult rate will be extended to include 21-year-olds.

George Bain, the chairman of the LPC, said the commission had taken into account the current difficult economic situation when setting the new rate.

He added: “These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage.

“We believe the Low Pay Commission’s recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers’ jobs as well as their earnings.”

Business groups had pushed for a freeze in the minimum wage rate this year, but both the British Chambers of Commerce and the CBI said the ‘modest’ increase proposed was acceptable.

 

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