The UK national minimum wage (NMW) is set to increase on the 1st of October 2014. This is the biggest increase in many years, the first increase at above-inflation levels since the recession, and means the economy is showing strong signs of recovery.
The current top line NMW is £6.31. This will be increasing to £6.50, so employers need to be prepared. Even if you’re not a direct employer, your business will still be faced with change – recruiters placing candidates at or near NMW need to factor the change into their margin and charge rates.
Employers are being urged by the Department for Business, Innovation & Skills to be ready for increases. The Government announced the following increases:
19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
10p (2%) increase in the rate for 18 to 20-year-olds (from £5.03 to £5.13 per hour)
7p (2%) increase in the rate for 16 to 17-year-olds (from £3.72 to £3.79 per hour)
5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
Make a start early by informing your end clients, and get in touch with forest to learn how we can help.