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National Minimum Wage



New Member
Hi All,

Not to sure how many of you guys are employers but as of the 1st October there will be a change to the National Minimum Wage. The changes are as follows:

Rates from 1 October 2010

From 1 October 2010 new rates and age bands will apply.

* £5.93 - the rate for workers aged 21 and over
* £4.92 - the 18-20 rate
* £3.64 - the 16-17 rate
* new minimum wage of £2.50 per hour for apprentices who are either under 19 or in the first year of their apprenticeship

I'd like to understand everyone's opinion of the minimum wage, do you think it works in favour of the employee?

Kind Regards

Scottish Business Owner

Scottish Business Owner

New Member
I think in some respects it's a good thing as hopefully it gives people a better standard of living. I also see it from the employers viewpoint as well in that the cost to the business is always increasing and you cant always look to pass it on. It surely does have an impact when businesses are trying to decide to hire or not.

I do really like the introduction of the apprentice one as that was never really fair that it was exempt before.
EmployEasily Legal Services

EmployEasily Legal Services

EmployEasily Legal Services
I worked in recruitment back in the mid 90s, before the minimum wage was around and remember we had contracts where the temps were getting paid as little as £3.00 per hour.

The introduction of a minimum wage was long overdue and I certainly think it has helped to lift many people above the poverty line over the years and that most businesses were able to absorb the increase in opex it created.

Having said all that, I think the timing of the latest increase to the minimum wage (which was initiated by the previous government) is pretty poor.

SMEs are already facing big financial challenges in light of the recent (some might say current) recession so when you combine this with the impact the looming VAT increase is likely to have and costs that today's introduction of the Equality Act are expected to incur (the British Chamber of Commerce estimates this at £190 million UK wide) you'd struggle to argue with anyone who says enough is enough.

This latest increase in the minimum wage equates to around a two per cent rise in each category.

With many businessess putting wage increases and bonus schemes on hold, is it right that minimum wages are increased at this time?