Minimum wage set to rise this October

16.06.09


The national minimum wage for adults is to rise to £5.80 an hour as from October. The government has accepted the Low Pay Commission’s recommendation of a 7 pence increase from £5.73.
Other hourly rates are also to rise. The rate for 18 to 21-year-olds will 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. In addition to the rate changes that will come into effect this year, the government has said that, as from October 2010, the adult rate of the minimum rate will be extended to include 21-year-olds.
George Bain, the chairman of the LPC, commented on the decision: “These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage. We believe that 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.”
John Cridland, the CBI’s deputy director-general, commented: “This moderate increase recognises that many businesses are struggling, and helps protect jobs at a time of rising unemployment.
“Over the past decade, the minimum wage has risen faster than average earnings and inflation, and a sensible, cautious approach now will help ensure this landmark piece of legislation continues to improve the lives of low paid workers for many years to come.”

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