Low Pay Commission Seeks Views on National Minimum Wage Rates

July 9, 2014

Low Pay Commission Seeks Views on National Minimum Wage Rates

The Low Pay Commission (LPC) is seeking views from interested parties in order to report on its remit from the Government with regard to the National Minimum Wage (NMW) rates that should apply from October 2015.

The LPC has been requested to:

  • monitor, evaluate and review the levels of each of the different NMW rates and make recommendations on the levels it believes should apply from October 2015;
  • consider whether:
    1. any changes can be made to the apprentice rate to make the structure simpler and improve compliance;
    2. the structure and level of the apprentice rate should continue to be applied to all levels of apprenticeship, including higher levels; and
  • review the conditions that need to be in place to allow the value of the minimum wage to increase in real terms. This would include an update on the LPC's advice on the future path of the NMW.

In making recommendations in the areas set out above, the LPC is asked to consider whether we are entering a new phase in which real increases in the NMW can be afforded, as was concluded in its 2014 report, and to take into account the state of the economy, employment and unemployment levels, and relevant policy changes.

If you would like to respond to the questions posed in the consultation document, it can be found here. The consultation closes on 26 September 2014.