UK minimum wage rise revealed

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The UK minimum wage is set to increase later this year

Businesses of all sizes must understand the importance of providing remuneration packages in line with the law and therefore the news that the national minimum wage is to increase by 20p from October 1st is something every company needs to be aware of.

The government has accepted all the recommendations set forth by the Low Pay Commission earlier this month and will now see the adult minimum rate of remuneration increase by 20p to £6.70 per hour.

In addition, the rate for 18 to 20-year-olds will rise by 17p to £5.30 per hour and the rate for 16 to 17-year-olds is increasing by 8p to £3.87 per hour.

However, perhaps the most important aspect of these changes is a  57p rise in the rate of remuneration for UK apprentices to £3.30 per hour - the largest ever rate increase for this group.

Meanwhile, business secretary Vince Cable has announced the planned launch of a new National Minimum Wage Accelerator - an online tool that will make it easier to compare rates of pay across different regions, sectors and professions.

It is designed to offer improved clarity for individuals seeking to find out more about their own level of remuneration in relation to their peers across the country.

Responding to the government's decision to accept its recommendations, chair of the Low Pay Commission David Norgrove commented: "We judge that the improved economic and labour market conditions mean once again that employers will be able to respond in a way that supports employment.

"However, our recommendation this year is predicated on a forecast which foresees lower costs for business in fuel and energy, a strong economic performance, significant recovery in earnings across the economy and rising productivity."

In total, approximately 1.4 million of the nation's lowest paid workers are expected to directly benefit from these changes.