National Minimum Wage Advice
The majority of workers above the school leaving age is permitted to receive at least a specific amount of pay per hour; this is known as National Minimum Wage. The rate is set each year by ministers with the advice of the independent Low Pay Commission.
Employers are legally obliged to pay at least this rate of pay, even if a contract has been previously signed at a lower rate.
The rates up until 1st October 2008 are;
Aged above the school leaving age, and below 18: £3.40
Aged 18 – 21: £4.60
Aged 22 and above: £5.52
After 1st October 2008, the rates will increase to;
Aged above the school leaving age, and below 18: £3.53
Aged 18 – 21: £4.77
Aged 22 and above: £5.73
There are some people that are exempt from this law; those not entitled to National Minimum Wage are;
1. workers under school leaving age
2. genuinely self-employed workers
3. au pairs
4. armed services personnel
5. voluntary workers
Also, some apprentices are not entitled to the above rates of pay.
If an employer does not pay the National Minimum Wage to its employees, they could be investigated by NMW Compliance Officers and may be forced to pay the correct rate, as well as any necessary back pay.
To talk more about NMW, or to report underpayment you should call the NMW Helpline on 0845 6000 678.
Return to Employment Law Menu