National minimum wage: Age for adult rate drops to 21
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National minimum wage: Age for adult rate drops to 21
The age at which workers can receive the full national minimum wage (NMW) this year will fall to age 21, which will mean that employers will see costs rise by nearly £50 million.
Latest published NMW Regulations state that the age from which the principal rate becomes payable will drop from 22 to 21 on 1 October 2010. Employees of that age and above will be entitled to a minimum wage of £5.93 per hour - up 2.2% from £5.80.
The Government estimates that the cost to business, charities or voluntary bodies for giving full minimum wage rate to 21-year-olds would be about £48.2 million. These changes would affect about 85,000 21-year-old wage earners.
Furthermore, for workers aged between 18 and 20, their hourly rate will rise from £4.83 to £4.92; and the rate for workers aged under 18 will rise from £3.57 to £3.64 per hour.
However, trainees in the first year of their apprenticeship do not currently qualify for the NMW, the new Regulations specify that these apprentices will receive a new hourly rate of £2.50 in future.
The age at which workers can receive the full national minimum wage (NMW) this year will fall to age 21, which will mean that employers will see costs rise by nearly £50 million.
Latest published NMW Regulations state that the age from which the principal rate becomes payable will drop from 22 to 21 on 1 October 2010. Employees of that age and above will be entitled to a minimum wage of £5.93 per hour - up 2.2% from £5.80.
The Government estimates that the cost to business, charities or voluntary bodies for giving full minimum wage rate to 21-year-olds would be about £48.2 million. These changes would affect about 85,000 21-year-old wage earners.
Furthermore, for workers aged between 18 and 20, their hourly rate will rise from £4.83 to £4.92; and the rate for workers aged under 18 will rise from £3.57 to £3.64 per hour.
However, trainees in the first year of their apprenticeship do not currently qualify for the NMW, the new Regulations specify that these apprentices will receive a new hourly rate of £2.50 in future.