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National Minimum Wage goes up above inflation

The National Minimum Wage and National Living Wage (NMW) has risen by more than the rate inflation.

The new rates

From 1 October 2014, the new rates are:

  • £6.50 per hour for adults, a rise of 19p or 3 per cent
  • £5.13 per hour for 18 to 20-year-olds, a rise of 10p or 2 per cent
  • £3.79 per hour for 16 to 17-year-olds, a rise of 7p or 2 per cent
  • £2.73 per hour for apprentices, a rise of 5p or 2 per cent.

The increase of the main rate by 3 per cent follows the recommendations from the independent Low Pay Commission in March this year.

It's the first time in six years that the rate increase will beat inflation.

The rate rise will mean that more than 1 million people will see their pay rise by as much as £355 a year, according to the Department for Business, Innovation and Skills.

The number of people on the NMW has almost doubled to around 1.2 million employees from just over 600,000 since its introduction in 1999, the Resolution Foundation said.

Eligibility

Most UK workers over school leaving age are legally entitled to be paid at least the NMW. Those eligible include agency workers, casual workers, part-time workers, pieceworkers, homeworkers and anyone working on commission.

Those not entitled include the self-employed, volunteers, students on work experience, people on certain training schemes, some company directors, workers living in an employer's household, residents of certain religious communities, prisoners, the armed forces and share fishermen.

Employers can be named, and face criminal prosecutions and unlimited fines for failing to pay at least the NMW to eligible workers.

Acas publications and services

Acas experts can visit your organisation and help employers understand and meet their obligations surrounding pay and contracts. See the Workshops, projects and business solutions page for more information or call the customer services team on 0300 123 1150.

Practical training is also available on Contracts and terms and conditions, and for new employers, Employing People - A Practical Introduction.

For free, impartial advice and guidance visit Acas Helpline Online.

Visit the Acas Training Courses, Workshops and Projects area for more information.


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