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13th March 2008

NEWS IN BRIEF

Minimum Rise

Nearly one million low paid workers will be marginally better off from 1 October 2008 when the National Minimum Wage (NMW) rate goes up from £5.52 to £5.73.

The rate for 18-21 year olds will also increase from £4.60 to £4.77, while the 16-17 year old rate will rise from £3.40 to £3.53.

The Government says it has also boosted funding for enforcement of the NMW and is planning tough new penalties for rogue employers who underpay staff as part of the Employment Bill, now before the Parliament.

These include:

• A fairer method for dealing with national minimum wage arrears, calculated so that workers do not lose out as a result of underpayment
• Toughening up penalties for those who break the law, increasing the maximum penalty for non-payment of the NMW to an unlimited fine. The most serious cases of non-compliance will be tried in a crown court.

For more information, go to: www.wired-gov.net/wg/wg-news-1.nsf/lfi/158446