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Government approves new National Minimum Wage rates for October 2013

The new (adult & youth) National Minimum Wage rates that will come into effect on 1st October 2013 have been announced by the government following recommendations from the independent Low Pay Commission.
Following the recommendations, the government has concluded however, that the apprentice rate will be increased rather than frozen as recommended by the Low Pay Commission. The Low Pay Commission based this recommendation on concerns about level of compliance with the apprentice rate.

The following rates will come into effect on 1 October 2013:

  • the adult rate will increase by 12p, from £6.19 to £6.31 per hour
  • the rate for 18-20 year olds will increase by 5p, from £4.98 to £5.03 per hour
  • the rate for 16-17 year olds will increase by 4p, from  £3.68 to £3.72 per hour 
  • the apprentice rate will increase by 3p, from £2.65 to £2.68 per hour.
  • the accommodation offset increases from the current £4.82 to £4.91
 
Business Secretary Vince Cable said:

“The independent Low Pay Commission plays a crucial role in advising the government when setting the National Minimum Wage every year. It balances wages of low paid workers against employment prospects if the rate was set too high.”
 
“We are accepting its recommendations for the adult and youth National Minimum Wage rate increases, which I am confident strikes this balance. However, there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.”


Read the full Press Release on the Government National Minimum Wage 2013 increase.


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