CURRENT NATIONAL MINIMUM
WAGE RATES
The
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.
NB: 16 and 17 year old apprentices will be exempt from the
new young workers rate.
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. |