Posts Tagged ‘ Minimum Wage ’

Minimum wage rate confirmed for October 2014

The national minimum wage will increase by 19p per hour to £6.50, business secretary Vince Cable has announced.

stack-of-cash-rising

Cable has accepted a recommendation by the Low Pay Commission (LPC) to increase the rate by 3%, representing the first minimum wage rise in six years that is higher than inflation.

The new rates will come into effect in October and should increase the number of jobs covered by the minimum wage by more than one-third, to 1.25 million.

“The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take-home pay since 2008,” said Cable. “I urge businesses to consider how all their staff – not just those on the minimum wage – can enjoy the benefits of recovery.”

In a report issued this month, the LPC pointed out that higher than average wage increases for low-paid workers have not had an adverse impact on employment levels.

However, it added that a sustained increase in wages would depend on increased productivity.

It recommended: “For wage increases to be sustainable they must be affordable, which generally requires an overall increase in output per head.”

Dave Prentis, general secretary of the union Unison, welcomed the rise – but said that it should be closer to the level of the living wage, an hourly rate calculated according to the cost of living in different parts of the UK. This is £8.80 in London and £7.65 outside of the capital.

He said: “Across the country people are struggling to make ends meet. The sooner we move to a living wage the better. The real winners today will again be payday loan sharks who prey on working people, unable to bridge the financial gap between what they earn and what their families need to survive.”

2014
03/12
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Key dates: Employment law changes expected in 2011

Recruitment consultancy IntaPeople lists the key employment law changes of 2011 and the dates they are expected to come into force – essential for any human resources professional, line manager or business owner keen to keep up with the looming changes.


April 3

– Fathers can claim up to six months’ of the mother’s maternity leave provided she returns to work, under new Additional Paternity Leave arrangements. The new right is granted to fathers of children due on or after 3 April 2011. The extra leave is in addition to the current two weeks’ paternity leave entitlement.

April 4

– Single Equality Duty for public bodies comes into force, replacing the current separate duties for race, disability and gender, and including other grounds such as sexual orientation and religious belief.

April 6

– Default retirement age set to be abolished. Employers no longer able to issue notifications for compulsory retirement using the DRA procedure. Some employers may be able to objectively justify why certain workers should retire, such as those in the police force or construction industry.

– Personal allowance for income tax for basic rate tax payers under the age of 65 will be increased by £1,000.

– Employers’ national insurance contributions increased by 1pc to 13.8pc. National Insurance Contributions will also be increase by 1pc for employees, and the primary threshold increased by £570. Threshold at which employers pay National Insurance raised by £21 per week.

– Employees of companies with fewer than 250 employees are granted statutory right to request time off for training or study. Already in place for businesses with more than 250 employees, the change means employers have to seriously consider any training requests received.

Also in April (date TBC)

– Right to request flexible working extended to parents with children under 18, one year older than present. Employees must be employed by the same business for 26 weeks or more before they are eligible.

– Bribery Act 2010 comes into force, introducing a new corporate offence of failure to prevent bribery by employees, agents, or other “associated persons” working on behalf of a business. This is unless a business can show that it has adequate anti-bribery procedures in place.

October 1

The Agency Workers Regulations 2010 will give agency workers the same basic employment conditions as permanent employees after just 12 weeks on an assignment. This will relate to pay, holidays and other conditions of employment.

IntaPeople is an independent recruitment consultancy, providing permanent and contract staff throughout the UK, Europe and Middle East.

2011
02/15
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Equality Act 2010
Recruitment
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New £5.93 minimum wage rate from October

National Minimum Wage rates are to rise from October 2010, with the minimum rate for workers aged 21 and over rising to £5.93 an hour. And for the first time a minimum wage rate for apprentices has been set.

Minimum wage rates

From October 2010, National Minimum Wage rates will increase from:

  • £5.80 to £5.93 an hour for workers aged 21 and over
  • £4.83 to £4.92 an hour for workers aged 18 to 20
  • £3.57 to £3.64 an hour for workers aged 16 to 17

The rise is around the two per cent mark in each category. As promised, the government has extended the adult minimum wage rate to 21-year-olds from October 2010. Previously the qualifying age for the National Minimum Wage was 22.

Apprentice minimum wage – £2.50 per hour

The government also accepted a recommendation from the Low Pay Commission (LPC) to introduce an apprentice minimum wage of £2.50 per hour.

The new rate will apply to:

  • apprentices under 19
  • apprentices aged 19 and over, but in the first year of their apprenticeship

LPC Chairman David Norgrove said: “We are pleased that the government has again accepted the Commission’s recommendations. The introduction of an apprentice rate marks an important extension to minimum wage protection across the UK.


However, the British Retail Consortium (BRC) has warned the government about further rises that could damage job creation.

It said next year’s increase must be no more than 1.7%, as a larger rise would seriously impede retailers’ ability to maintain and create jobs.

Stephen Robertson, of the BRC, said the government must strike the right balance between higher wages and more jobs.

“Trading conditions are tough, higher costs, such as next April’s National Insurance increase will pile on even more pressure,” he said.

“Even a small increase in 2011’s minimum wage could choke off retailers’ vital potential to create new jobs.”

The government is also cracking down on employers who flout the minimum wage laws. It said it would name and shame offenders, publicising breaches from 1 January 2011.

Employment Minister Edward Davey said firms had three months to put their house in order.

“Bad publicity can be a powerful weapon in the fight against employers who try to cheat their workers and competitors. Their reputation can be badly damaged if they are seen to be flouting the law,” he said.

The national minimum wage was introduced in 1999, at a rate of £3.60 an hour.

2010
10/01
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Industry Report
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