Minimum Wage increases confirmed with rise for apprentices from October

The National Minimum Wage is set to increase in October 2015, the government has announced. The increases from the current rate would be as follows:

The national minimum wage will increase by 20p an hour, from £6.50, to £6.70

Apprentices will earn an extra 57p an hour, taking their wages from £2.73, to £3.30. This covers apprentices who are under 19, or 19 and over and in the first year of their apprenticeship.

The rates were recommended by the Low Pay Commission but the government has gone further than the 7p an hour increase suggested for apprentices.

There will also be an increase of 27 pence in the accommodation offset to £5.35. The offset is the one benefit-in-kind that can count towards the minimum wage. This is the maximum daily sum employers who provide accommodation can deduct towards those costs.

A series of measures have recently been introduced to crack down on employers that break National Minimum Wage law. As well as being publicly named and shamed, those that fail to pay their workers the National Minimum Wage also face heavy new financial penalties.

The BWF’s employment, legal and tax guidance is an important part of our support for woodworking companies. BWF members needing advice on tax and employment matters can use our free-to-members business support helplines which includes legal assistance from Wedlake Bell, and employment advice from Croner. They can find further resources in this area under publications, where we have a number of guides and template documents.