Rise in National Minimum Wage

accountants North WalesSince the 1st of October the new National Minimum Wage has been in effect.

The National Minimum Wage has been raised in response to recommendations by the independent Low Pay Commission that were presented back in April of 2013.

This rise is intended to improve the living standards of the lowest paid workers at this crucial time when the UK is experiencing signs of economic recovery.

The increase has been met with mixed receptions. The British Chambers of Commerce believe the rise in the National Minimum wage will put pressure on business as recovery has not gone far enough at this stage, however, there are many, including the Trades Union Congress, that see the rise as not going far enough. They believe the benefits of the recovery need to be shared and the lowest paid need to be among those who experience improvement.

The National Minimum Wage will increase to £6.31 per hour. This means adults are seeing a wage increase of 12p. 18 to 20 year olds are receiving a National Minimum Wage increase of 5p as their minimum pay rises to £5.03. 16-17 year olds have received a rise of 4p as their National Minimum Wage rises to £3.72 and the apprentice rate has risen by 3p.

The pay rise for apprentices was not included in the recommendations from the independent Low Pay Commission, however, the government does not expect this pay rise, which has been described as modest, to affect the recruitment of apprentices. The Trades Union Congress are pleased to see signs that apprentices are being valued.

There has also been an increase in the accommodation offset of 9p to £4.82 per day.

These increases are in conjunction with new efforts to combat businesses who try to violate the National Minimum Wage.

For more information on tax, tax news and managing your money please contact Salisburys Accountants North Wales.