Changes Made to National Minimum Wage

i-Paye co-founder and tax expert Paul Hughes highlights the upcoming changes that were made to the National Minimum Wage in the 2010 Budget.

He says: ‘The 2010 Budget confirmed that in line with recommendations from the Low Pay Commission on and from 1 October 2010 the National Minimum Wage rates would be altered.’

The rates will change to the following:

• The adult hourly rate for workers aged 21 and over increases to £5.93.
• The development hourly rate for 18 to 20 year olds increases to £4.92.
• The development hourly rate for 16 to 17 year olds increases to £3.64.
• A new minimum wage of £2.50 per hour will apply to apprentices under 19 and to apprentices aged 19 and over who in are in the first year of their apprenticeship.
  

The estimated cost of employment for businesses will increase to the following:

Rate £5.93 x 40.00 hours, plus holiday, plus Employers NI        £7.14 per hour
Rate £4.92 x 40.00 hours, plus holiday, plus Employers NI        £5.87 per hour
Rate £3.64 x 40.00 hours, plus holiday, plus Employers NI        £4.25 per hour

For the first time ANYWHERE, contractors, freelancers and self-employed professionals can choose an umbrella service for their pay which truly fits.

Leave your details below to join the i-Paye revolution.

Receive regular updates from i-Paye by signing up for our email newsletter.