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News - 12 May 2009

Government Approves New 5.80 Minimum Wage Rate

The government has announced new National Minimum Wage rates to take effect in October 2009.

1) Low paid workers aged 22 and over can look forward to an increase from £5.73 to £5.80 an hour.
2) The rate for 18 to 21-year-olds will also rise from £4.77 to £4.83.
3) For 16 and 17-year-olds, the rate will go up to £3.57 an hour from £3.53.

Nearly one million people will benefit from October's increase after the government approved recommendations from the independent Low Pay Commission (LPC).

As well as the rate changes to take effect this year, the government has accepted an LPC recommendation that the adult rate of the minimum wage should be extended to 21-year-olds. This will be implemented from October 2010.

The LPC also recommended that information should be available on employers who have shown wilful disregard for minimum wage laws.
 

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