Government Sets Out 2015 Minimum Wage Remit

They have done this by asking the Low Pay Commission (LPC) to conduct its annual review of different national minimum wage (NMW) rates and make recommendations on the levels which should apply from 1 October 2015.

The review has also identified the importance for the right pay for apprentices. They have asked the LPC to make recommendations on how NMW rates for apprentices can be simplified. One main reason for such an intervention from the government is that the current system of the rates to which apprentices are paid by, such as according to their age and length of time they have worked can be a problematic system for employers to understand, leading to poor compliance. The new remit will be designed to determine the wage that apprentices are entitled too.

The Government has also asked the LPC to assess whether there is scope for above inflation increasing minimum wage rates without harming employment, when it makes its recommendations for the 2015 rates. The LPC will report to the Government in February 2015.