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► National minimum wage

The National Minimum Wage (NMW) was introduced in April 1999, entitling workers - for the first time ever in Britain - to a guaranteed minimum pay rate. It is illegal for an employer to pay less than the minimum wage.

Who is entiltled to the National Minimum Wage?

In the UK most workers aged 16 or over are entitled to a National Minimum Wage (NMW).  This includes:

 

    • part-time workers
    • temporary, agency or casual workers (for example on short-term contracts)
    • home workers and piece workers
    • full-time permanent workers

 

However, there are some exceptions where workers are NOT entitled to the NMW.  These include:

    • workers under the age of 16
    • students following work experience as part of a higher education course
    • workers living as part of a family (ie.. au pairs and nannies) who are not paying for accommodation or meals
    • family members who work for the family business
    • genuine volunteer workers.
    • the genuinely self-employed

If you think that you may fit into one of the above groups, please seek advice (see contact details for 'National Miniumum Wage' below).

Current Rates

The NMW is fixed at four different rates, which increase on the 01October each year: -

1)  Full Rate: £5.73 per hour from 1st October 2008 increasing to £5.80 per hour from 1st October 2009

Workers aged 22 and over – however see below.* 
                 
2)  Youth Rate:   £3.53 per hour from 1st October 2008 increasing to £3.57 per hour from 1st October 2009

Workers aged 16 or 17 (however if working in an apprentice scheme – they are not entitled to the NMW).

3)  Development Rate: £4.77 from 1st October 2008 increasing to £4.83 per hour from 1st October 2009
Workers
aged 18 to 21 inclusive – as soon as a worker turns 22 they are entitled to the full rate.

* This rate also applies to workers aged 22 and above during the first 6 months of a new job if they receive accredited training.

How is the NMW calculated?

The NMW is calculated as an average hourly rate worked out over a time period corresponding to how you are paid.  For example if you are paid weekly the period used in the calculation is weekly, and if you are paid monthly the period is one month.  As long as your average pay per hour is not found to be below the NMW during this period employers can pay less than the NMW for some hours that you work. 

The TUC website has launched an online calculator to work out whether you are being paid the NMW.  This can be found at their website:  www.worksmart.org.uk

 

 

 

What to do if your employer is not paying you the NMW

 

If you don’t think you’re receiving the NMW it will be worth contacting the national Pay and Work Rights Helpline on 0800 917 2368.

 

If your employer has tried to force – or persuade – you to sign an agreement, which gives you less than the NMW this agreement, it will NOT be legally binding.  It may be that you will need to enforce your right to get the NMW by making a claim for an unlawful deduction of wages to an employment tribunal.  There are strict deadlines for taking such a case to tribunal so seek advice from a Generalist Adviser at the SAC as soon as you think there’s a problem.  

 
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