Minimum Wage – Rises

A rise in the earnings of the lowest paid workers has come into effect today.

The UK minimum wage increases from £6.08 to £6.19 an hour.

The rate for those aged under 21 generally remains unchanged, with only apprentices receiving an increase.

This freeze in the minimum wage for those aged under 21 means:

  • The rate for 18 to 20-year-olds stays at £4.98 an hour
  • The rate for 16 and 17-year-olds stays at £3.68 an hour
  • However, the rate for apprentices rises by 5p to £2.65 an hour

 The government had announced in March that the minimum wage would rise by 11p.

The 1.8% rise is slightly lower than the typical rise in earnings and the current rate of inflation, (which represents current rise in the cost of living.)

The minimum wage was introduced in 1999 at £3.60 an hour for adults. The latest minimum wage level reflects recommendations made by the Low Pay Commission.

These new rates are a particular devastating blow to younger people who face the biggest hit on their living standards. There being no evidence that the minimum wage has had an adverse impact on young people’s employability so it is hard to see why their pay has been frozen.

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Posted in PAYE & Payroll

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