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.

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 22 and over and is currently £5.73 per hour.

The 'development rate' is currently £4.77 an hour and applies to 18 to 21-year-olds.

The development rate may also apply to workers aged 22 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 £3.53 per hour.

Those who are not entitled to the National Minimum Wage

Apprentices under the age of 19 and apprentices who are 19 or over and in the first twelve months of their apprenticeship.

 

 

Who can get the National Minimum Wage?

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. For example, you're entitled to receive the minimum wage if you're:

* employed by an agency.
* a homeworker.
* a part-time worker.
* a casual worker.
* a pieceworker.
* a worker on a short-term contract.

However, you are not entitled to receive the minimum wage if you are:

* a worker under school leaving age.
* are genuinely self-employed.
* some apprentices.
* an au pair.
* in the armed services.
* a voluntary worker.

The DTI website offers more details about the minimum wage.

The Low Pay Commision

The Low Pay Commission was set up to advise the Government about the National Minimum Wage. In this role they carry out extensive research and consultation so they can advise the Government about rates, trends and compliance. Some of their activities include:

• Commissioning research projects.


• Analysing relevant data and actively encouraging the Office of National Statistics to establish better estimates of the incidence of low pay.


• Carrying out surveys of firms in low-paying sectors.


• Carrying out fact-finding visits throughout the UK to meet employers, employees and representative organisations.

To find out more about the Low Pay Commission visit their web site:

www.lowpay.gov.uk