The government has approved a rise in the National Minimum Wage from £6.31 to £6.50 per hour later this year (2014), with more than 1 million people set to see their pay rise by as much as £355 a year.
The rise will take effect in October 2014, as Business Secretary Vince Cable has accepted in full the independent Low Pay Commission’s recommendations for 2014, including plans for bigger increases in future than in recent years.
The Low Pay Commission (LPC) has said the rise, the first real terms cash increase since 2008, is manageable for employers and will support full employment.This year’s (2014) increase in the adult rate will increase the real value of the minimum wage for the first time in 6 years through the biggest percentage increase since 2008. The LPC predicts that an increase in line with their recommendation would increase the number of jobs covered by the minimum wage by over a third, to around 1.25 million and would lift NMW workers’ pay relative to other earnings too.
This in turn means that for all payments from October 1st the lowest contracting rate that the payroll company ADVANCE can receive is £8.20 p/h.