The Government has announced that the national minimum wage is to be increased by 15p an hour to £6.08 from 1st October 2011, benefiting almost a million workers.

Ministers have said that they have accepted the 2.5% increase recommendations from the Low Pay Commission, the complete changes are shown below:


National Minimum Wage CURRENT RATE With effect from 1st Oct 10 NEW RATE With effect from 1st Oct 11
Aged 21 and above:- £5.93 per hour £6.08 per hour
Aged 18 to 20 (inc.):- £4.92 per hour £4.98 per hour
Training Rate*:- £4.92 per hour £4.98 per hour
Aged 16 and 17:- £3.64 per hour £3.68 per hour
Apprenticeship Rate** £2.50 per hour £2.60 per hour
*Paid for the first 6 months of employment to those aged 22 and over and for whom you are providing accredited training.
**Apprentices under the Age of 19, or aged 19 and above but still in their first year of Apprenticeship.

Vince Cable, the business secretary, said: “More than 890,000 of Britain’s lowest-paid workers will gain from these changes. They are appropriate, reflecting the current economic uncertainty, while at the same time protecting the UK’s lowest-paid workers.’

Liquid customers can obtain further information and help with implementing new legislation from our HR and Employment Partner, Sentinent.  Free HR, employment and health and safety information including downloadable forms, documents and letters is available at any time via the HR tab in your software package.

And if you need help with managing your payroll why not talk to us about our new integrated Liquid Payroll, which has all the benefits of cloud accounting including the ability to email payslips.  Call 0845 450 7304 or email sales@liquidaccounts.net for further information.

Read more about this story at the BBC.  To keep up-to-date with Liquid’s news you can read our blog and follow us on Twitter, Facebook or LinkedIn.