< Pensions - auto-enrolment

Changes to the national minimum wage – Trailer

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The revised rates, applicable from the first 'pay reference period' that starts on or after Monday 01 October 2012, have recently been announced and are as follows:

 

• adult rate - increases to £6.19 an hour
• 18-20 year olds - remains unchanged at £4.98 an hour
• 16-17 year olds - remains unchanged at £3.68 an hour
• apprentice rate - increases to £2.65 an hour
• the maximum amount that can be offset where accommodation is provided will be £4.82 per day.

The Government confirmed that the rates for young people are frozen in order to minimise the barriers to job creation; the increases for adults and apprentices are 1.8% and 1.9% respectively, both significantly lower than inflation.

The Low Pay Commission's report also contained the following recommendations to the Government:

 

• make frequent use of the 'naming and shaming' process for NMW employers who do not comply with the legislation
• seek out publicity opportunities to ensure that the implications of non-compliance are highlighted
• review all existing NMW guidance with the object of making the NMW 'as simple as possible for all users'.

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