The National Minimum Wage

The National Minimum Wage is an important part of the Governments strategy to provide employees with decent minimum standards and fairness in the UK workplace.

The Rates of Minimum Wage with only a few exceptions, all workers in the UK aged 16 or over are legally entitled to be paid a minimum amount per hour for the work that they do for their employer.

This is regardless of the kind of work done or the size and type of company. The rate of minimum wage is reviewed every year, and any increases take place in October (the latest rates from
1st October 2011 are shown below).

There are three rates of National Minimum Wage. These are based on recommendations of an independent body called the Low Pay Commission.

The main (adult) rate applies to workers aged 21 and over and is currently £6.08 per hour.

The 'development rate' is currently £4.98 an hour and applies to 18 to 20-year-olds.

The development rate may also apply to workers aged 21 and over during the first six months in new employment, who are receiving accredited training. For the training to apply there must be a written agreement between the worker and the employer, specifying that the worker will attend training on at least 26 days during the first six months of employment.

The third rate applies to young people who are 16 to 17-years-old and who are above school leaving age. This rate is currently £3.68 per hour.

There is a group who are not entitled to the full National Minimum Wage. These are apprentices under the age of 19 and apprentices who are 19 or over and are in the first twelve months of their apprenticeship. The newly introduced 'Apprentice Minimum Wage' is only £2.60 per hour.

Almost everyone who works in the UK is legally entitled to be paid the National Minimum Wage.

This is the case even if an employer asks a worker to sign an employment contract at a lower rate of pay.

It isn't necessary to be in full-time employment, or to work at an employer's premises.