For more information about the new Pay & Work Rights Helpline visit:
www.directgov.uk/payandworkrights
NATIONAL MINIMUM WAGE
IS GETTING BIGGER!!
The National Minimum Wage will increase again on 1st October 2009, as follows:
22 years old and above - £5.80 per hour -previously £5.73
18 to 21 years old - £4.83 per hour - previously £4.77
16 & 17 years old - £3.57 per hour - previously £3.53
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What is the National Minimum Wage?
The National Minimum Wage is a statutory employment right which covers the majority of workers above school leaver’s age, and is the minimum hourly payment for any work undertaken by an employee.
The minimum wage rate depends on a workers age.
There are 3 age categories:
- Workers aged 22 and over
- 18 to 21 Year old workers
- 16 & 17 Year old workers
National Minimum Wage Rates:
| Age Band |
From 1st October 2009
(Rate per hour) |
| 22 years and above |
£5.80 |
| 18 to 21 year olds |
£4.83 |
| 16 & 17 year olds |
£3.57 |
Changes to Rates:
The National Minimum Wage is continually reviewed and increased in line with economic conditions. Increases in minimum wage normally take effect annually on 1st October.
Employer responsibilities:
An employer could be breaking the law if they fail to pay their staff the minimum wage.
- The minimum wage legislation is enforced by the HMRC and an employer must be able to prove that they are paying their staff the minimum wage, if requested.
- Employers must keep sufficient records to prove payment of the minimum wage.
- If a dispute arises the burden will be on t he employer to prove that the minimum wage has been paid rather than on the worker to prove that it is not.
Employers not paying the minimum wage are required to bring all employees wages up to the minimum wage and pay arrears to workers who have been affected.
Who is entitled to NMW?
- Workers
- Agency Workers
- Agricultural Workers
- Home workers
- Piece Workers
- Commission Workers
- Workers with a Disability
- Seafarers
- Offshore Workers
- Workers from outside the United Kingdom
What about Apprentices and Trainees?
The minimum wage legislation allows for time bound exemptions for apprentices on recognised training programmes:
- Most apprentices are exempt from the minimum wage until they reach the age of 19
- Apprentices who start with an employer after the age of 19 will qualify for the minimum wage after a 12 month exemption period
- For apprenticeship exemptions to apply an apprenticeship contract must be in place with appropriate training provided
- The helpline can provide information as to which apprentices and trainees are exempt and how long the exemption may apply.
Who does not qualify for NMW?
- Genuinely Self employer
- Company Directors
- Some Apprentices*
- Students doing work experience as part of a higher education course
- People living and working within the family
- Friends & Neighbours (when jobs done under informal arrangements)
- Members of the armed forces
- Share Fishermen
- Prisoners
- Voluntary Workers
* Most apprentices are exempt from the minimum wage until they reach the age of 19 or for a 12 month period for older apprentices, so long as an apprenticeship contract is in place with appropriate training provided.
What About “Benefits in Kind”? Accommodation etc?
There are strict rules about benefits in kind and the minimum wage. Some jobs provide benefits as well as payment in wages, such as free meals and accommodation or discounts off company products.
The only benefit that an employer can count against national minimum wage is accommodation.
There are special rules for calculating the value of your accommodation which counts towards the national minimum wage.
From 1st October 2009 the daily rate of the accommodation offset will be £4.51 for each day that accommodation is provided (£31.57per week).
What Doesn’t Count as National Minimum Wage?
A number of payments do not count toward national minimum wage, including:
- expenses,
- deductions made for uniforms and tools
- overtime and shift premium
- redundancy payments
- retirement lump sums.
- From 1st October 2009, the use of tips, service charges, gratuities and cover charges can no longer be used to make up national minimum wage pay.
Where can I get more information or advice?
The Pay & Work Rights Helpline (0800 917 2368) offers information and advice to employees regarding entitlement and the rates of minimum wage.
- The Helpline is a confidential service.
- Available Monday to Friday between 8am to 8pm and Saturday 9am to 1pm
- 0800 Freephone number
- Translation service availble.
What to do if you are not receiving National Minimum Wage?
If you think that you or someone that you know may not be receiving minimum wage, please call one of the Pay & Work Rights Helplineadvisers in confidence on 0800 917 2368 or click here to make a online complaint. If you are not being paid correctly you can place an anonymous complaint through the Helpline, which will be passed along to the local Compliance Team for investigation. In cases where employers are found not to be paying minimum wage they will be required to bring all employees into line with current rates and to repay any arrears of wages due to the staff.