The national minimum wage will rise by 11p to £6.19 an hour in October, the government has announced (it currently stands at £6.08 an hour for people aged 21 and over.)
This is a rise of 1.8% from the current level, which is lower than the current inflation rate.
The minimum wage for workers aged under 21 will be unchanged - a decision that has been criticised by union leaders.
The minimum wage was introduced in 1999 at £3.60 an hour for adults. The level is recommended each year by the Low Pay Commission.
The changes to be made in October echo the recommendations made by the commission.
The freeze in the minimum wage for those aged under 21 means that from October 1:
• The rate for 18 to 20-year-olds will remain at £4.98 an hour
• The rate for 16 and 17-year-olds will remain at £3.68 an hour
• However, the rate for apprentices will rise by 5p to £2.65 an hour
Business Secretary Vince Cable said that the decision marked the "right balance between pay and jobs".
"In these tough times freezing the youth rates has been a very hard decision - but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run," he said.
David Norgrove, who chaired the Low Pay Commission's discussions, said the decision was unanimous, despite all the economic uncertainties and the different pressures on low-paid workers and businesses.
If you have any questions about this, then contact Travail Employment and we will endeavour to help you on 01476 577248
