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Minimum wage band changes may catch businesses out

Minimum wage band changes may catch businesses out
Friday, 06 August 2010 23:00

From 1 October 2010, employees will qualify for the top rate of minimum wage at age 21. Unlike previous years to gain the top hourly rate you had to be 22 years of age.

It has been calculated that this change in age beacket could cost buinesses a further £48 million and it is expected that 85,000 extra workers will be lifted into the adult wage category.

The new adult rate will be £5.93, up from £5.80 per hour, and will include employees aged 21 or over.

For workers aged between 18 and 20, the new October rate will be £4.92, up from £4.83; for those aged under 18, the rate will rise from £3.57 to £3.64 an hour.

For the first time apprentices aged under 19, or those in the first year of their training, will be entitled to a minimum wage rate of £2.50 per hour.

There is also concern that the change in band will catch many employers unaware with far more changes than normal in October

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