The National minimum wage
What is the National Minimum Wage?
The National Minimum Wage is a minimum hourly rate of pay which a workers pay must not fall below. It became statute on 1st April 1999 to prevent excessively low pay to workers as well as setting a minimum benchmark for employers. It is a legal right which applies to almost all UK workers.
What are the rates of the National Minimum Wage?
The rates from 1st October 2009 are as follows:
- Workers aged 22 and over - £5.80 per hour
- Workers aged 18-21 - £4.83 per hour
- Workers aged 16-17 - £3.57 per hour
- Accommodation offset - £4.51 per day (£31.22 per week)
From October 2010, National Minimum Wage rates will increase from:
- £5.80 to £5.93 an hour for workers aged 21 and over
- £4.83 to £4.92 an hour for workers aged 18 to 20
- £3.57 to £3.64 an hour for workers aged 16 to 17
If a worker suspects that their employer is not paying them the National Minimum Wage they can make a complaint about their employer to the HMRC. The HMRC is responsible for enforcing the National Minimum Wage and as well as responding to complaints received by workers they also conduct ad hoc visits to employers to ensure compliance of the National Minimum Wage to workers.
Who is eligible for the National Minimum Wage?
The National Minimum Wage applies to adult workers that are:
- Working legally in the UK
- Not genuinely self-employed
- Have a written, oral or implied contract
Apprentices who are under 19 years of age are not currently entitled to the National Minimum Wage, neither are apprentices who are 19 and over and in the first 12 months of their apprenticeship. However, from October 2010, apprentices under 19 years old or aged 19 or over but in the first year of their apprenticeship, will be entitled to a minimum wage of £2.50 per hour.
The above information is not intended to be a complete or definitive statement of the law. For more information or advice please contact our Employment Law team.
