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Minimum wage boost
12 May 2008
The National minimum wage (NMW) will rise from £5.52 to £5.73 for workers aged 22 and over, the Government has announced.
The hourly rate for 18-21 year-olds will increase from £4.60 to £4.77 and from £3.40 to £3.53 for 16-17 year-olds. The new rates will apply from October 1.
General secretary John Hannett, who sits on the Low Pay Commission, welcomed the 3.8 per cent hike. "This latest increase will improve the quality of life for many of our members whose employers pay the NMW rates," he said.
"However, we are disappointed that the Low Pay Commission's recommendation to lower the age for the adult rate to 21 was rejected. Usdaw will continue to campaign for the adult rate to be paid at 18. We will also keep campaigning for a significant increase for 16-17 year-olds to ensure they are not exploited."
The NMW was introduced in April 1999 with the adult rate set at £3.60. Since then it has gone up by 60 per cent. The Government said that one million people would benefit from the latest increase, two-thirds of which are women.
Employers who fail to pay the NMW now face an unlimited fine, instead of a maximum penalty previously imposed, after the prime minister signalled his intention to crackdown on rogue bosses.
The TUC claim around 150,000 workers are still being paid less than the statutory minimum.
Since 1999 £27m in unpaid wages has been recovered on behalf of 80,000 workers.
For more information on the NMW visit: www.hmrc.gov.uk/nmw
or call the helpline number
0845 6000 678.
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