National Minimum Wage - new rates announced
The new National Minimum Wage (NMW) rates that will come into effect from 1 October 2006 were announced just before the Budget. The adult rate will increase by almost 6%, the development rate by 4.7% and the 16 to 17 year old rate by 10%. These increases far exceed inflation rates.
| Existing rate |
New rate from 1/10/06 |
|
| Adult Rate (Workers aged 22 and over) |
| £5.05 |
£5.35 |
|
| Development Rate (Workers aged 18-21 and the accredited training rate) |
| £4.25 |
£4.45 |
|
| Workers aged 16-17 |
| £3.00 |
£3.30 |
|
Those businesses that are heavily influenced by these rates can now begin to budget and forecast with certainty for the effects.