Employers’ Guide To National Minimum Wage

Since the 1 April 1999, all workers in the United Kingdom have been subject to the National Minimum Wage Act. This act of parliament set a national minimum amount that employers in the UK must pay their employees. It is also the minimum amount that workers in the UK are allowed to tender their services for. Workers can, of course, earn more than the UK minimum, but never less.

It isn't necessary to be in full-time employment, or to work at an employer's premises to qualify for the National Minimum Wage. For example, you're entitled to receive the minimum wage if you're:

employed by an agency
a home worker
a part-time worker
a casual worker
a pieceworker
a worker on a short-term contract

However, you are not entitled to receive the minimum wage if you are:

a worker under school leaving age
genuinely self-employed
some apprentices
an au pair
in the armed services
a voluntary worker

The rates from 1 October 2009 are:

£5.80 an hour for workers aged 22 and over
£4.83 an hour - the 'development rate' - for workers aged 18 to 21
£3.57 an hour for those older than school-leaving age and younger than 18 (someone is under school-leaving age until the end of summer term of the school year in which they turn 16).

From this date it is no longer legal for employers to use tips to top up wages to qualify as a minimum wage.

The Government has confirmed that the National Minimum Wage will increase from 1 October 2010 to:

£5.93 an hour for workers aged 21 and over
£4.92 an hour for workers aged 18 to 20
£3.64 an hour for those older than school-leaving age and younger than 18 (someone is under school-leaving age until the end of summer term of the school year in which they turn 16).

As well as increases to the three minimum wage rates from 1 October 2010, a new apprentice rate will be introduced at £2.50 an hour. This new rate will apply to all apprentices under 19 and for apprentices aged 19 and over who are in their first year of their apprenticeship.

If you have staff and you are at all concerned about how the National Minimum Wage affects what you pay, the Forum of Private Business is here to help. The Forum of Private Business is committed to providing business support on every aspect of your business. Our small business support provides a cost-effective solution, negating the need to employ senior expertise across each discipline.

By: Ben Holloway

Article Directory: http://www.articledashboard.com

The Forum of Private Business is a proactive, not-for-profit organisation which can assist you with every aspect of running your business and across every department, from HR and finance to business development.