Carter Jonas
Carter Jonas

National Minimum Wage rates have risen

The National Minimum Wage rates went up on October 1, as announced in George Osborn’s 2014 Budget in March.

The rises recommended by the Low Pay Commission are:

  • a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
  • a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
  • a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
  • a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)

It may be that as an agricultural sector employer you offer accommodation as part of employment and this can be offset against the statutory wage. There is a useful calculator at https://www.gov.uk/national-minimum-wage-accommodation.

It’s important to be aware of significant dates such as employee birthdays to ensure people are paid at or above the correct minimum wage for their age. There are also rules about rates for different types of work, such as piece work, and holiday pay entitlements. Further explanation can be found at: https://www.gov.uk/holiday-entitlement-rights.

If you have been using the minimum wage system since its inception are you aware that since 2010 there has been a separate rate for apprentices that applies from ages 16 to 18 or to apprentices aged 19 and over in their first year of apprenticeship? After that year, the normal age-related minimum wage applies.

Employers with queries about the national minimum wage system should find the answers at: https://www.gov.uk/national-minimum-wage.

Tim Jones

Tim JonesFRICS

Partner - Head of Rural Division

Tim is head of the firm's Rural Division and of the Cambridge office, although he spends a considerable amount of time in London.  He has over 20 years experience in advising institutional and pri...

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