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New minimum wage rates came into force on 1 October 2012

For those who saw, and absorbed, the recent BBC news that the new UK minimum wage came into force on 1 October, the following may well be broadcasting to the informed.  However, knowing is one thing; acting on it is another!  Be sure that your domestic staff, housekeepers, carers, etc. are on or above the new minimum levels.

This follows on from the government’s announcement in March that the minimum wage would rise by 11p.  This 1.8% rise is slightly lower than the typical rise in earnings and the rate of inflation, which represents the rising cost of living.

In real terms this provides for an increase in the UK minimum wage from £6.08 to £6.19 per hour. The rate for those aged under 21 remains unchanged.

The freeze in the minimum wage for those aged under 21 means that:

  • The rate for 18 to 20-year-olds remains at £4.98 per hour
  • The rate for 16 and 17-year-olds remains at £3.68 per hour
  • However, the rate for apprentices rises by 5p to £2.65 per hour.

The minimum wage was introduced in 1999 at £3.60 per hour for adults. The latest setting for minimum wage levels mirrors recommendations from the Low Pay Commission.

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