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Student Jobs, Young Workers And The National Minimum Wage Rules

01 Oct 2010

Student Jobs, Young  Workers And The National Minimum Wage Rules Changes that may affect you with regards to the law for part time jobs, holiday work, gap year jobs and full time jobs come into effect today, 1 October 2010. These changes to the National Minimum Wage (NMW) rules and rates should be good news for student job pay and young workers in general.

The two big changes in the rules are that the adult age band has been lowered from 22 to 21 and a new rate for apprentices has been introduced.

Lowering the adult qualifying age from 22 to 21, in what the government estimates will cost businesses and other organisations £48 million, will mean that more students and young people will be entitled to the highest rate of the National Minimum Wage. This move will bring an estimated 50 thousand more people into the highest bracket and is the equivalent of receiving a pay rise of over 20 per cent for 21 year olds.

Also introduced today is the new NMW for apprentices after a recommendation from the Low Pay Commission. The new rate of £2.50 is for apprentices under 19 or first year apprentices who are 19 and over. Although, it is good to see a minimum rate for apprentices introduced, many have said that £2.50 is not enough.

In addition to these two rule changes, October 1 also marks the annual rate increases of the National Minimum Wage. The adult rate which will now apply to anyone 21 or over has been increased by 2.2% from £5.80 to £5.93.

Lower down the age scale, the NMW rate for 18 to 20 years olds rises to £4.92 from £4.83 and 16 and 17 year olds will now be entitled to £3.64, up from £3.57.

The Low Pay Commission forecasts that about 970 thousand workers will be better off due to the National Minimum Wage alterations today. Certainly, the changes should mean more money in the pockets of students who hold down part time jobs while they are studying or find holiday jobs over summer and Christmas.

If you need more information on employment law and how it might affect you when working in holiday jobs, part time jobs or on a gap year then visit our Part Time Jobs And The Law page.

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