Minimum wage rises to £5.93 at Simple Debt Relief

Minimum wage rises to £5.93

Posted by Gladys G on October 3, 2010 Leave a comment (0) Go to comments

Minimum wage workers should see an increase in their pay from this month, with the national minimum wage increasing to £5.93 an hour, up from £5.80.

For the first time, people aged 21 will benefit from the top rate wage, which was previously only compulsory for workers aged 22 or over.

There are also corresponding increases for younger workers, with 16 and 17-year-olds seeing a rise from £3.57 an hour to £3.64. For 18 to 20-year-olds the rate is increasing from £4.83 to £4.92 an hour.

For the first time, a national minimum wage has been introduced for apprentices under the age of 19, who must now be paid £2.50 an hour as part of their apprenticeship.

But the British Retail Consortium, an industry that relies heavily on minimum wage labour, claimed that the government had to be careful that it didn’t discourage further job growth with additional increases.

“Trading conditions are tough, higher costs, such as next April’s National Insurance increase will pile on even more pressure,” said Stephen Robertson, of the BRC.

“Even a small increase in 2011’s minimum wage could choke off retailers’ vital potential to create new jobs.”

The government is also cracking down on employers who flout the minimum wage laws. It said it would name and shame offenders, publicising breaches from 1 January 2011.

Employment Minister Edward Davey said firms had three months to put their house in order.

“Bad publicity can be a powerful weapon in the fight against employers who try to cheat their workers and competitors. Their reputation can be badly damaged if they are seen to be flouting the law,” he said.

The national minimum wage was introduced in 1999, at a rate of £3.60 an hour.