Tuesday, 2 October 2012

Changes to the National Minimum Wage effective 1st October 2012


There are new national minimum rates coming into force on 1st October 2012: £6.19 for workers aged 21 and over, £4.98 for those 18-20 (frozen) and £3.68 for 16-17 year olds (frozen).

Good news for apprentices whose minimum wage will increase from £2.60 to £2.65 which we feel is just above slave labour rates now. With youth unemployment hitting worryingly high rates, increasing the minimum wage for younger job seekers will only put employers off taking staff on.

Hopefully this move will instil some confidence in employing younger workers as well as giving young people a chance to get on the career ladder. However the Rowntree Foundation points out that the minimum wage is not the same as a living wage. A single person in work needs to earn £16,400 a year in order to be left £193 a week net after paying basic rent, tax and national insurance.
 
Simon Morgan - HR Dept

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