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New National Minimum Wage rates

We advised earlier that the Low Pay Commission was recommending to the government new rates for the National Minimum Wage (NMW) and, as an employer of domestic staff, this is likely to affect you.

This recommendation has now been accepted and the following rates will come into effect from 1 October 2014.  The changes will see more than one million workers benefit from a pay rise of up to £355 per year.

The new NMW hourly rates will be:

Adult rate – rising from £6.31 to £6.50 (an increase of 3%)
18-20 year old rate – rising from £5.03 to £5.13 (an increase of 2%)
16-17 year old rate – rising from £3.72 to 3.79 (an increase of 2%)
Apprentice rate – rising from £2.68 to £2.73 (an increase of 2%).

The Low Pay Commission was established in 1997, prior to the implementation of the National Minimum Wage Act 1998, to advise the government on wage issues.

Further rises may be applied if the UK economy meets the following three criteria:  a sustainable rise in real wages in the UK economy, rising or stable employment rates, and an expectation of sustained economic growth.

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