Saturday, 29 August 2009

National Minimum Wage

Introduced in 1999 the NMW is the lowest amount employers can legally pay their workers. HMRC makes sure that employers comply with the rules and most workers, including part-time, casual, home-workers and agency workers, are entitled to be paid the NMW. It doesn’t apply to the self- employed or members of the armed forces. Other exceptions include apprentices in the first year of their apprenticeship.

There is a separate Agricultural Minimum Wage for most Farm workers and others in agriculture, enforced by the Department for the Environment, Food and Rural Affairs. NMW rates are based on the recommendations of the independent Low Pay Commission - whose members include employers, employee groups and academic experts - and last went up on 1 October 2008. They are currently £5.73 per hour for workers aged 22 years and older, £4.77 per hour for workers aged 18-21 and £3.53 per hour for all workers under 18 but above compulsory school age. Tips and other service charges can only be counted towards the minimum wage when they are paid through the employer’s payroll.

Complaints about non-payment of the NMW can be made to the NMW Helpline: 0845 600 0678.

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