New minimum wage rates comes into force
Low paid workers will get a pay rise tomorrow as a new minimum wage rate comes into force.
The adult rate will rise from £4.50 to £4.85, the 18-21 rate from £3.80 to £4.10 and 16 and 17 year-olds will be entitled to a rate of £3.00 per hour.
Those working from home will also be covered by the rules for the first time. From October 1st they will have to be paid the minimum wage for all hours worked, and when workers are paid by the completion of a piece of work, be paid the minimum wage for the number of hours an average worker takes to complete the task.
The Government estimates about two million workers will benefit from the rise, with workers in the north set to benefit most.
Speaking today, the Trade and Industry Secretary Patricia Hewitt, said: “We are committed to eradicating poverty pay and today’s new rates are another big step towards turning that aim into a reality.”
“The change to the homeworking rules will protect people who work in an industry that has a history of exploitative rates of pay, especially minority ethnic and women workers.
“The new rate for 16 and 17 year olds extends protection to another vulnerable group of people. We want young people to stay in education or training but we must ensure that those who do choose to work are not exploited.”
The increases though are still below the £5.00 rate that the unions are demanding. They will though be heartened by John Reid’s commitment yesterday to pay all those working for the NHS a minimum of £5.69 an hour.
By contrast, employers’ organisations are warning that the raise in the minimum wage could damage business.
