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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.
In the UK most workers aged 16 or over are entitled to a National Minimum Wage (NMW). This includes:
However, there are some exceptions where workers are NOT entitled to the NMW. These include:
If you think that you may fit into one of the above groups, please seek advice (see contact details for 'National Miniumum Wage' below).
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.
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
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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