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Wage increases from October 1st 2009



National Minimum Wage (NMW)
Increases in the hourly rates of the NMW will take effect on 1 October 2009. These will be:
- Standard (adult) rate: £5.80 (rising from £5.73).
- Development rate: £4.83 (rising from £4.77).
- Young workers rate: £3.57 (rising from £3.53).

Prohibition on using tips for NMW
From October 1st 2009, employers will be prohibited from counting service charges, tips and gratuities processed through their payrolls towards the payment of the NMW.

Maximum limit of a week's pay
The maximum limit of a week's pay for calculating certain compensation payments, eg statutory redundancy payments and the Basic Award in unfair dismissal cases is to increase from £350 to £380. This will remain unchanged until February 2011.

For further information please contact Jonathan Gray, head of employment at Lamport Bassitt.
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