National Minimum Wage rates are to rise from 1 October 2010 with the minimum rate for workers aged 21 and over increasing to £5.93 an hour.  Also, for the first time, a minimum wage for Apprentices has been set.

Rates will therefore increase as follows:

For workers aged 21 and over:From £5.80 to £5.93
For workers aged 18 to 20:     From £4.83 to £4.92
For workers aged 16 to 17:     From £3.57 to £3.64

This rise reflects an increase of around 2% in each category.  These new rates also confirm that the adult minimum wage will now apply to 21 year olds where previously the qualifying age was 22.

The new rates also include for the first time a minimum wage for Apprentices which has been fixed at £2.50 an hour.  This new rate will apply to all Apprentices under 19 and for Apprentices aged 19 and over who are in the first year of their Apprenticeship.  The Low Pay Commission has campaigned for some time for the introduction of an apprentice minimum wage.  However the figure of £2.50 per hour may be viewed by many as somewhat derisory.

Given that the new coalition government has not indicated any proposed changes to the National Apprenticeship Scheme, employers are able to take advantage of the provisions within the scheme set up by the previous Labour government.  The minimum wage level of £2.50 per hour certainly gives employers plenty of scope to maximise the advantage of apprentice workers within their organisation.  The equivalent figure of £100.00 minimum for a 40 hour week when taken in isolation is however a step forward compared with the previously unregulated situation.

Source: Qdos Consulting