New minimum wage rates come into effect
The new National Minimum Wage (NMW) came into effect on 1 October.
These are the main changes:
- The adult rate increases by 12p to £6.31 an hour
- The rate for 18-20 year olds increases by 5p to £5.03 an hour
- The rate for 16-17 year olds increases by 4p to £3.72 an hour
- The apprentice rate increases by 3p to £2.68 an hour.
- The accommodation offset increases from £4.82 to £4.91
Employers who fail to pay the minimum wage can be fined and ordered to make up any arrears due to employees who have been underpaid.
The Government has also announced that more employers will face the prospect of being named and shamed if they fail to pay the NMW. It’s hoped that the threat of reputational damage will encourage more businesses to comply with the regulations.