CURRENT NATIONAL MINIMUM WAGE RATESThe national minimum wage is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace. It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay. The rates set are based on the recommendations of the independent Low Pay Commission. Main (adult) rate for workers aged 22 and over: £5.52 per hour from 1 October 2007. This increases to £5.73 in October 2008. Development rate for workers aged 18-21 inclusive: £4.60 per hour from 1 October 2007. This increases to £4.77 in October 2008. NB: The development rate can also apply to workers aged 22 and above during their first 6 months in a new job with a new employer and who are receiving accredited training. A new rate for
16 and 17 year olds: £3.40 per hour from 1
October 2007. This increases to £3.50 in October 2008. Accomodation Offset: £4.30 per day (£30.10 per week) from October 2007, increasing to £4.46 per day (£31.22 per week) in October 2008. Fair Piece Rates From October 2004, the Government is proposing that employers will have to pay their workers the minimum wage for every hour they work or a fair piece rate initially set at 100% of the minimum wage. The rate will increase to 120% of the minimum wage in April 2005 at which point most homeworkers will receive the minimum wage. |