Advice and information on the new national minimum wage

The government has announced that the national minimum wage will rise by 20p to £6.70 in October 2015. The 3% increase will be the largest real-terms rise in the national minimum wage since 2008 with over 1.4 million workers set to benefit.

The hourly rate for younger workers will also rise and apprentices will receive a 20% wage increase – or 57p – to £3.30 an hour. This will be the largest ever increase in the national minimum wage for apprentices and will halve the gap with the national minimum wage for 16 to 17 years olds, which will be £3.87 an hour from October 2015.

Although the wage increase was recommended by the Low Pay Commission the government has raised the apprentice wage by considerably more than the LPC’s 7p suggestion. The rate applies to apprentices aged 16 to 18 and to first year apprentices aged 19 or over. All other apprentices will be entitled to the national minimum wage for their age.

The government also announced that it is to launch a consultation with business on the future of the national minimum wage rate for apprentices.

The Prime Minister, David Cameron commented that the across-the-board increase would ‘offer more financial security’ to workers but trade unions argue that the new rates don’t go far enough to address ‘in-work poverty’.

The new national minimum wage rates from 1 October 2015

  • a 20p (3%) increase in the adult rate (from £6.50 to £6.70 per hour)
  • a 17p (3%) increase in the rate for 18 to 20 year olds (from £5.13 to £5.30 per hour)
  • an 8p (2%) increase in the rate for 16 to 17 year olds (from £3.79 to £3.87 per hour)

You can find out more about the national minimum wage and current rates here. If you are an employer or a prospective candidate and you need advice about the new minimum wage please get in touch to find out how we can help.

By Helen Younger

Orbital Recruitment are a supplier of personnel for both temporary and permanent vacancies to companies throughout the UK and are a specialist in delivering bespoke recruitment solutions tailored to companies needs. Find out more about the recruitment services we offer.