The Government has approved a rise in the National Minimum Wage to £6.50 per hour later this year, with more than one million people set to see their pay rise by as much as £355 a year.
The rise will take effect in October, as Tessa’s boss and Business Secretary Vince Cable has accepted in full the independent Low Pay Commission’s recommendations for 2014, including plans for bigger increases in future than in recent years.
The Low Pay Commission (LPC) has said the rise, the first real terms cash increase since 2008, is manageable for employers and will support full employment.
The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, will be:
- A 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour);
- A 10p (2%) increase in the rate for 18-20 year olds (from £5.03 to £5.13 per hour)
- A 7p (2%) increase in the rate for 16-17 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)
Tessa Munt said:
“A worker on the adult minimum wage rate working a 36-hour week, 52 weeks a year would receive £355 a year more in their pay packet under the new £6.50 per hour minimum wage rate as of October 2014.
“I’m delighted that Vince has made this principled and positive decision which will benefit those people who work hard, often go un-thanked but who we all rely upon every day.”