The National Minimum Wage has increased today (1 October) from £5.35 to £5.52 per hour.

To receive the full minimum wage, workers must be 22 and over. The wage for workers aged between 18 and 21 increased by 15p to £4.60 per hour, while young people aged 16-17 will see their wage increase by 10p to £3.40 per hour.

The government also announced that the minimum annual leave allocation has increased from 20 days to 24 day, which will rise again in April 2009 to 28 days.

Pat McFadden, the minister of state for employment relations, said: “These changes will improve the lives of millions of British workers – giving them more time with their families and within their communities, and ensure that our lowest-paid workers continue to be able to earn a living wage.

“Up to six million workers will benefit from the extra annual leave, while businesses will benefit from a more motivated and productive workforce.”

McFadden also said that breaches of the new wage will not be taken lightly, and that maximum fines for employers that flout the law have been increased to £5,000 as well as criminal prosecution.