Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employee relationsEmployment lawEquality, diversity and inclusionLatest NewsEconomics, government & business

National minimum wage increases to £5.80 per hour

by Louisa Peacock 1 Oct 2009
by Louisa Peacock 1 Oct 2009

The National Minimum Wage (NMW) increase to £5.80 per hour, starting today, will benefit nearly one million workers, according to the TUC.

Two in three of the 950,000 beneficiaries will be women, reinforcing the NMW’s positive role in narrowing the gender pay gap.

The union body also claims the increase in the minimum wage should benefit the public finances by over £100m, with workers paying £58m more in income tax and national insurance and the government saving £44m on tax credits and in-work benefits.

TUC general secretary Brendan Barber said: “The raise is a modest one but it will put extra cash in the pockets of some of the UK’s most low paid workers. The Low Pay Commission was right to withstand pressure from business to freeze the minimum wage during the recession.”

Today’s 1.2% increase in the NMW (from £5.73 to £5.80) will be the tenth increase since it was introduced in April 1998.

Over the last decade the NMW has increased by 61.1%, compared to a 52.1% growth in average earnings and a 34.9% increase in the Retail Price Index (excluding housing costs) over the same period.

Read more about the NMW from XpertHR, including a detailed overview of changes and future developments. Next year the threshold for the adult rate falls from age 22 to 21.

Also from today (Thursday) it will be illegal for employers to use tips left by customers in cafes, restaurants, hotels and bars to make up the minimum wage for their staff.

Barber said: “This is a real success for unions in sectors where staff rely on tips. They have campaigned hard for some much-needed transparency in a very murky system.

“It’s vital tipping and payment policy are clear to both workers and consumers.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

For an in-depth look at these and other employment law changes starting today read the Personnel Today employment law changes feature.

[Ed: article edited in light of reader comment]

Louisa Peacock

previous post
Free Guide: 10 Steps to Making a Final Decision
next post
Employment law changes coming into effect 1 October 2009

You may also like

Number of Neet women rises but figures fall...

23 May 2025

Bank holidays: six things employers need to know

23 May 2025

Unions ponder strike action after public sector pay...

23 May 2025

Personnel Today Awards 2025: Three weeks left to...

23 May 2025

Sighing in frustration at colleague was discriminatory, judge...

23 May 2025

Flexible working for teachers initiative extended

23 May 2025

Fire and rehire: the relocation question

22 May 2025

Public sector workers gain pay rises of up...

22 May 2025

Six ways to kickstart conversations about team stress...

22 May 2025

UK net migration slashed by half in one...

22 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+