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Employer Briefing: 1st October Increase in NMW

1st October 2012 will see moderate increases in the National Minimum Wage (NMW) and compliance will be crucial for all employers.

The increases, recommended by the independent Low Pay Commission (LPC) and announced by the Government this March, will see an 11 pence rise in the ‘main rate’ NMW for adults, from £6.08 to £6.19 per hour, representing a 1.8% rise. There will also be a 5 pence rise in the rate for apprentices either under 19 years old, or over 19 years old and in the first year of their apprenticeship, from £2.60 to £2.65 per hour. Meanwhile, youth rates for employees aged 16-17 and 18-20
will remain the same.

The increases were welcomed by the CBI, which is the only employers’ body represented on the LPC. The fairly moderate increases were expected in the context of current economic conditions.

Main Rate

Apprentice Rate 16-17-year-olds

18-20-year-olds

Current NMW

£6.08 £2.60 £3.68 £4.98

NMW from 1st
  October

£6.19 £2.65 £3.68

£4.98

Increase 11p increase 5p increase No increase

No increase