UK national minimum wage will increase to £5.80 an hour from October.

The UK Government has today (12 May) announced that the national minimum wage will rise by 7p to £5.80 an hour starting in October 2009.

Workers aged 22 and over will receive a minimum of £5.80 per hour from October; up from the previous £5.73 national minimum wage.

The rate for 18 to 21-year-olds will also increase to £4.83 from £4.77. Minimum wage for 16 to 17-year-olds will increase by 4p to £3.57 an hour.

According to the government, nearly one million people benefit from this increase, after it approved recommendations made by the independent Low Pay Commission (LPC).

Following the recommendations from the LPC, the adult minimum wage rate is set to include 21-year-olds from October 2010.

Business Secretary Lord Mandelson said: “The National Minimum Wage (NMW) has been in place for 10 years and remains one of the most important rights for workers introduced in that time.

“The Low Pay Commission has carefully examined the latest economic data before making their recommendations on the minimum wage rate, balancing the needs of workers and businesses in the current economic climate.

“The government agrees with this assessment and has accepted the recommendations for these new rates to take effect in October.”

George Bain, Chairman of the LPC, added: “These are very challenging times for the UK and unprecedented economic circumstances for the minimum wage.

“We believe that the Low Pay Commission’s recommendations are appropriate for this economic climate. They reflect the need to protect low-paid workers’ jobs as well as their earnings.”

The British Chambers of Commerce (BCC), however, was disappointed with the announcement and had hoped for a freeze on the minimum wage rate.

Commenting, David Frost, Director General of the BCC, said: “We pressed for a freeze to the minimum wage because of the severity of the downturn and the daily loss of jobs.

“We are pleased that the increase is only a modest one, and it shows that the Low Pay Commission and the Government have largely understood the seriousness of the situation.

“However, a freeze in the NMW would have been more help to business.”