The National Minimum Wage will rise to £6.50 per hour in October 2014, the government has confirmed.
More than one million people will see their pay rise by as much as £355 a year.
The National Minimum Wage rates from 1st October 2014, as recommended by the Low Pay Commission (LPC) will be: a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour); a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour); a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour); and a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour).
Business Secretary Vince Cable who accepted in full the LPC’s recommendations for 2014 said they “mean that low paid workers will enjoy the biggest cash increase in their take home pay since 2008.”
He added: “This will benefit over 1 million workers on National Minimum Wage and marks the start of a welcome new phase in minimum wage policy.”