New National Minimum Wage rates come into force

The pay packets of thousands of Welsh workers will be boosted from today as the new National Minimum Wage rates come into force.

From Thursday 1 October 2015, the apprentice rate of the National Minimum Wage (NMW) goes up by 57 pence to £3.30 and the NMW rate for adult workers will rise by 20 pence from £6.50 to £6.70 per hour.

Secretary of State for Wales Stephen Crabb said:

“Today’s increase in the National Minimum Wage will be a boost to the pay-packets of thousands of Wales’ workers . This crucially includes apprentices who are at the heart of our commitment to support a stronger economy.

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“This increase, together with the introduction of the National Living Wage and the increase in tax free personal allowance are essential parts of our move towards a higher wage, lower tax, lower welfare society.

“This one nation government is committed to making work pay and making sure people who work hard get the salary they are entitled to.”

The boost for apprentices is the largest ever and means that those working 40 hours a week will now have £1,185 more in their pay packet over the year.

By implementing a rate higher than the Low Pay Commission’s (LPC) recommendation apprenticeships will deliver a wage that is comparable to other choices for work.

The three percent increase in the adult rate is the biggest real increase since 2006 and moves the NMW closer to the average wage than ever before. The new rate means that a full time employee, working 40 hours, will see the largest cash increase in their annual pay packets since 2008.

In Wales, some 80,000 jobs will be covered by the new adult rate.

The National Minimum Wage rates from 1 October 2015, as recommended by the Low Pay Commission (LPC), are:

From 1 October 2015:

• the adult rate will increase by 20 pence to £6.70 per hour
• the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
• the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour the apprentice rate will increase by 57 pence to £3.30 per hour
• the accommodation offset increases from the current £5.08 to £5.35