Minimum wage rises to £5.80

Date: 12th May 2009

The rate of National Minimum Wage (NMW) has been increased to £5.80 by the government following consultations by the Low Pay Commission.

All employees aged 22 or over on the payroll of organisations will now receive the 7p increase, while those between 18 and 21 must now be paid an hourly rate of £4.83. Staff aged 16 or 17 will see their pay rise to £3.57 per hour.

The changes will come into effect in October, giving companies enough time to make the required changes to payroll systems.

Lord Mandelson, business secretary, commented: "The NMW has been in place for ten years and remains one of the most important rights for workers introduced in that time.

"I am very proud of the difference it has made to the lives of the UK's lowest-paid workers."

He added that the NMW ensured a "level playing field" for the business community.

In response to the new rates, the British Chambers of Commerce stated that it was "pleased", but said it would have preferred no increase.