23 March 2006
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Department of Trade and Industry press release dated 20 March 2006
NMW rates
The adult rate of the minimum wage will rise from £5.05 to £5.35 an hour and the youth rate for workers aged 18 to 21 will be increased from £4.25 to £4.45 in October 2006. The rate for workers aged 16-17 years will increase from £3 to £3.30.
The Government has also said that it will:
- accept the recommendation that salary sacrifice schemes, including those for childcare vouchers, should not count towards the minimum wage;
- consider the recommendation that the Low Pay Commission review the apprenticeship exemptions in 2008;
- take into account the Commission's recommendation that enforcement should be stepped-up in sectors that employ migrant workers when considering sectors for targeted enforcement action in the future; and,
- accept that guidance for accommodation offset should be updated to make it as clear and comprehensive as possible.
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