Increase in NMW Rates

Harris & Co chartered accountants Northampton have reviewed the changes in the national minimum wage, which will affect businesses all over the UK.

The Government has announced increases in the NMW (national minimum wage) rates which will come into effect on October 1st 2013. These changes are:

• the adult rate will increase by 12p to 6.31 an hour
• the rate for 18-20 year olds will increase by 5p to 5.03 an hour
• the rate for 16-17 year olds will increase by 4p to 3.72 an hour
• the apprentice rate will increase by 3p to 2.68 an hour and
• the accommodation offset increases from the current 4.82 to 4.91.

In response to the changes, Katja Hall, Chief Policy Director of CBI said:

Pay restraint has been crucial in creating jobs in this tough economic climate.

The LPC has struck a careful balance in setting the rates given sluggish growth, particularly in recommending a cautious approach to youth pay.

The LPC will need to monitor the impact of raising the adult rate very carefully. Given average earnings this year are already lower than expected, we must make sure the minimum wage doesnt limit jobs in key sectors, by outstripping pay across the rest of the workforce.

The law is clear that employers must pay apprentices the legal minimum wage. It is right that ministers tighten up compliance and enforcement.

Implement Change With Chartered Accountants In Northampton

If you are looking for chartered accountants in Northampton, talk to the experts at Harris & Co. To help ensure that your business remains compliant with current legislation, they have developed a supportive compliance system, providing advice and services in annual accounts, auditing, taxes and tax planning.

For more information or to talk to our team of charted accountants in Northampton, please call 01604 660661 or email admin@harrisandco.biz.