Minimum wage to increase
In October 2008, the minimum wage will increase from £5.52 per hour to £5.73 per hour.
For employers, this means that any employee over the age of 21 will receive a 3.8% increase in their hourly rate.
Workers between the ages of 18 and 21 will receive £4.77, a 17p increase, whilst 16 to 17 year olds will see an increaser of 13p to £3.53 per hour.
Meanwhile, the Government is set to crack down on employers who fail to pay employees minimum wage. The penalty fine issued for failure to pay minimum wage will be uncapped, increased from a minimum of £231.84.
Minimum wage was introduced in 1999 to provide a level playing field for competition, ensuring that companies are competing on quality of products and services, and not on low labour costs.
Minimum wage applies to all status of workers and employees, including foreign workers. However there are some exceptions to the rule, this includes apprentices under the age of 19, or apprentices in the first year of their apprentice, students on a work placement that forms part of higher or national education.
If you would like more information on minimum wage, please contact one of the Gravitate HR team or see the the link below.
http://news.bbc.co.uk/1/hi/business/7279199.stm