Understanding National Minimum Wage law

National Minimum Wage rates

From 1 October 2008 the adult rate will increase from £5.52 per hour to £5.73. The 18-21 year old rate will increase from £4.60 to £4.77 and the 16-17 year old rate will increase from £3.40 to £3.53. The accommodation offset will increase from £4.30 per day to £4.46 per day

NMW rates are set based on recommendations of an independent body, the Low Pay Commission (LPC). You can learn about the current rates of the National Minimum Wage on the DTI website.

The main (adult) rate applies to workers aged 22 and over.

The development rate applies to 18 to 21-year-olds but 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 NMW rate came into force on 1 October 2004 for 16 to 17-year-old workers. Apprentices under the age of 19 are not entitled to the NMW. Apprentices aged 19 to 25 who are in the first 12 months of their apprenticeship are also not entitled.

Read further information on the NMW for employers on the DTI website.

Workers' rights
If workers believe they aren't receiving the minimum wage they can phone the National Minimum Wage Helpline on Tel 0845 6000 678. All suspected cases of underpayment are investigated. Workers who don't receive the minimum wage may also claim it through an employment tribunal or civil court.

Workers dismissed for asserting their right to the minimum wage will be considered as unfairly dismissed. They have the right to take a case to a tribunal if this occurs.

Subjects covered in this guide

• Introduction
• National Minimum Wage rates
• Who is entitled and who is exempt?
• What is included and not included?
• The four types of work
• Calculating hours worked and paid leave
• Records and reporting - best practice
• Enforcement and penalties
  

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