Pay - an overview of obligations

Complying with the National Minimum Wage

You must ensure you pay your workers at least the National Minimum Wage (NMW). This applies to most workers who are:

• aged 18 and over including homeworkers, agency workers, part-time workers, casual workers, piece workers, workers who are paid by commission and workers on short-term contracts
• since 1 October 2004, young workers aged 16 to 17 who are above the age of compulsory schooling
• apprentices aged 19 to 25 after 12 months' apprenticeship

There is a separate minimum wage for agricultural workers. You can read about the minimum wage for agricultural workers on the Defra website.

Among those not entitled to the NMW are:

• apprentices under the age of 19 and those between 19 and 25 in the first year of their apprenticeship
• share fishermen
• genuine voluntary workers
• au pairs living as part of the family
• family members living at home and helping to run a family business
• UK university or college students on placement with an employer as part of their course, ie a sandwich course that is no longer than one year
• genuinely self-employed

Subjects covered in this guide

• Introduction
• Issuing pay statements
• Statutory Maternity, Paternity and Adoption Pay
• Statutory Sick Pay
• Guarantee pay
• Complying with the National Minimum Wage
• Rates and calculation of the National Minimum Wage
• Paying workers holiday pay
• Making deductions
• Calculating final pay

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