National Minimum Wage Increases, Apprentice Minimum Wage Introduced from 1st October

The National Minimum Wage will increase from Friday 1st October 2010 by approximately 2%. Please note that the government has extended the adult minimum wage rate to include 21-year-olds (previously the qualifying age for the NMW was 22). The new rates will be as follows:
– £5.93 an hour for workers aged 21 and over (adult rate)
– £4.92 an hour for workers aged 18 to 20
– £3.64 an hour for workers aged 16 to 17 The changes were announced in March this year along with the announcement that the government, further to a recommendation from the Low Pay Commission, will introduce an Apprentice Minimum Wage of £2.50 per hour, also from 1st October 2010. The new Apprentice Minimum Wage will apply to:
– apprentices under 19
– apprentices aged 19 and over, but in the first year of their apprenticeship
Individuals in these categories were previously exempt from the National Minimum Wage. For those over the age of 18 who have completed their first year, the current minimum wage for their age group applies. The introduction of the apprentice minimum wage should not have too great an impact on the pay of apprentices in the woodworking and joinery industry – our yearly survey of members indicates that BWF members are already paying their 1st year apprentices more than the £2.50p/hour rate, with apprentices on Learning and Skills Council contracts required to be paid at least £95 per week.