Increase to the National Minimum Wage from 1 October 2012

On 1 October 2012, the National Minimum Wage (Amendment) Regulations 2012 came into force setting out the amended minimum hourly rates for four categories of worker; standard adult (aged 21 and above), development (aged 18 to 20), young workers (under 18 but above compulsory school age) and apprenticeship (apprentices under the age of 19 or those 19 and above in the first year of their apprenticeship).

The national minimum wage (NMW) was introduced by the National Minimum Wage Act 1998 and specifies the minimum hourly rate of pay to which most workers are entitled. All employers are obliged to pay the NMW, irrespective of their size.  The NMW figures are reviewed annually in line with recommendations from the Low Pay Commission, an independent statutory body set up under the National Minimum Wage Act 1998.

If an employer provides a worker with free accommodation, part of the value of the accommodation can be counted towards NMW pay and is called an” accommodation offset”. The maximum that can be deducted from NMW is set out below.

From 1 October 2012 those NMW figures are as below:

Date Standard minimum adult rate (per hour) Minimum Development rate (per hour) Minimum Young Workers rate (per hour) Minimum Apprenticeship rate (per hour) Accommodation offset limit (Maximum daily   deduction from NMW)
1 October   2012 – 30 September 2013

£6.19

£4.98 £3.68 £2.65

£4.82

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