Consultation on National Minimum & Living Wage (NMW & NLW) rates

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Circular No: NP/076/17

TO ALL BRANCHES & REGIONAL COUNCILS.

Our Ref: S1/7

17th May 2017

Dear Colleague,

Consultation on National Minimum & Living Wage (NMW & NLW) rates

Further to circular NP/007 of 17th January 2017, following publication of the new rates for statutory minimum wages effective from 1st April 2017, the Low Pay Commission (LPC) has launched a consultation on the impact of the NMW and NLW on pay and employment.

The LPC carry out this review ever year and the findings inform recommendations to Government in October on increases to statutory minimum wage rates, including the apprentice minimum wage and the Accommodation Offset. The full details of the LPC consultation are online here: https://www.gov.uk/government/consultations/low-pay-commission-consultation-2017  

In addition to the widespread payment of sub-NMW rates to seafarers in the UK shipping industry, RMT’s response will provide evidence of the impact of the NLW and NMW on pay and terms and conditions across the transport industry, particularly in the ancillary cleaning and facilities management sectors where outsourced contracts are common.

According to the LPC, an estimated 85,000 transport workers and over 290,000 cleaning and maintenance workers were paid the NMW or NLW in April 2017. Although the result of the General Election could change this, the LPC is currently expecting to recommend a rise in the NLW of around 40p to £7.90 per hour but has not commented on the other age related bands or the Accommodation Offset. The current rates and latest increases are collated in the table below:

Current minimum wage rates

Age Group

April 2016

April 2017

Increase

NLW (25+)

£7.20 p.h.

£7.50 p.h.

30p/4%

NMW (21-24)

£6.70 p.h.

£7.05 p.h.

35p/4.9%

NMW (18-20)

£5.30 p.h.

£5.60 p.h.

30p/5.6%

NMW (16-17)

£3.87 p.h.

£4.05 p.h.

18p/4.6%

Apprentices

£3.30 p.h.

£3.50 p.h.

20p/6%

Accommodation Offset*

£5.35 per day

£6.40 per day

£1.05/19.6%



*Daily deduction from wages where accommodation is provided by the employer (e.g. the shipping industry)

Branches and members are asked to provide any information or evidence they have of the impact that the NLW or NMW have had on contracts of employment, hours of work, deductions from earnings, pay differentials and training. Please do so by email to d.crimes@rmt.org.uk by 30 June 2017.

I would be grateful if you could bring the content of this circular to the attention of all members in your Branch.

Yours sincerely

 

Mick Cash
General Secretary