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Reminder – Increases in Minimum Wage and Statutory Redundancy Pay from 1st October 2009
The beginning of this month saw increases in the National Minimum Wage and the maximum weekly wage used in redundancy calculations.

The NMW rates increased with effect from 1 October 2009, as follows:

• Age 22 or over, from £5.73 to 5.80 per hour;
• Age 18 to 21, £4.77 to £4.83 per hour;
• Age 16 to 17, £3.53 to £3.57 per hour;

Note that from 2010 the age banding will change so that the adult rate will widen to include those aged 21 and above.

Employers should note that any tips and gratuities paid through the employer's payroll system (through a ‘tronc’ system) are no longer allowed to be treated as part of an individual's pay for the purposes of the National Minimum Wage.

The maximum weekly wage used for calculating a week’s pay (for the purposes of calculating a redundancy payment or compensation in unfair dismissal cases) has been increased from £350 to £380. Note that this is usually reviewed each February. However, because this has been brought forward, the next annual increase will take place in February 2011.
Posted on 19 Nov 2016


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