New minimum wage standard

December 7, 2011

With the national minimum wage changing we just wanted to remind all employers to make sure they are aware and meeting the new legislation. If these changes are not filtered down to the employees pay then employers will be left open to claims.  Minimum wage, for a lot of business owners, will be something that can go unheeded and easily and innocently missed. With HELP we want to make sure that this isn’t the case. The Guidelines for the new minimum wage are listed below.

From the 1st October 2011 the National Minimum Wage will increase as follows:

  • 21 and over – £6.08
  • 18 – 20 year olds – £4.98
  • 16 – 17 year olds – £3.68
  • Apprentices – £2.60

For employers who still do not understand how much they need to put these new regulations into place for every new employee there is always a reason behind this, after some research to give the best information for the reader we came across a simple sentence which really enforces how important this is. The Act states that, “Any employer who fails to comply with the above provisions shall be guilty of an offence, and shall be liable, upon conviction, to a fine”. (Quote taken from

The real question is, why is the minimum rate increasing? This could be settled with a share of positive outcomes and a share of negative outcomes, the biggest arguments that were proposed before the change on the positive side were:

  • Removing lower paid jobs, forcing workers to train and move towards higher paying jobs, benefiting companies and workers to increase the business.
  • Demands work ethic from those employees who are working on the lowest wage because employers will demand more return for the extra increase in their salary.
  • Increasing the standard of living for the poorest paid employees and raises the overall national average to increase the economy.

The main negative arguments were:

  • Damaging small businesses and not the large.
  • The chance of this causing price inflation because the scare of businesses trying to increase product/service price to compensate for the wage increase.
  • Encouraging young people to get straight into the workplace, therefore damaging the chance of them going on to further education.

Do you think the wage increase is worthwhile?

Make sure YOUR business is up to speed with these changes and if you require assistance on this or any other HR issue then please get in touch today!



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