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Students working part time will be among millions benefiting from an increase to the national minimum wage (NMW) coming into force today.

The increase accompanies an extension of allowance for holiday entitlement for full-time workers.

NMW rates are organised in a three-tier division system based on the age of staff.

For employees aged between 18 and 21, the NMW hourly rate will go up from £4.45 to £4.60. While for the over 22s, the NMW will rise to £5.52 per hour from £5.35.

Younger workers, aged 16 to 17, will get a NMW of £3.40, up from £3.30.

The rates were decided on recommendations from the Low Pay Commission and will benefit 31 per cent of all part time workers.

Brendan Barber, general secretary of the Trade Union Congress, said: "Monday's minimum wage increase will provide a much-needed boost to the pay packets of millions of low paid workers."

However, there are some exceptions to the pay rise, such as students on higher education work placements and work-shadowing or voluntary workers.

Subsequently, students wanting to gain work experience while paying off student debts may now opt for a paid position which will now give them an improved minimum wage.

Although this move is good news for students and other people paid the NMW, some industry experts worry it may have a negative effect on the economy, through inflation and lost taxes.

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