Articles Minimum Wage The Minimum Wage: UK Advice

The Minimum Wage: UK Advice

When it comes to the minimum wage UK employers need some advice so they know exactly what they are legally obliged to pay to whom. The National Minimum Wage has been in force for nearly ten years, with the rate of pay set ever year by the Low Pay Commission. That body consults with employers and others to come up with a figure that improves the condition of the lowest paid workers. As an employer, this information is essential so that you meet your legal obligations. The amount you will pay will depend on a number of factors. Here's the information on the national minimum wage UK employers need to know.

Who Gets The Minimum Wage?

A key question for employers is who is entitled to the minimum wage. The answer is simple - nearly every employee gets it. There are some exceptions, though. Those who work in the armed forces don't qualify, and some people who are following apprenticeship programmes may not qualify while in the early part of their apprenticeship. Those who are below the statutory school leaving age should be in school, and therefore do not receive the minimum wage. Finally, self employed people do not get the minimum wage. All other employees get this basic wage whether they work on your company premises or elsewhere, and whether they are full time employees or work part time.

Working Out The Right Amounts

Even among those who qualify for this wage there are differences in what individual employees receive. When it comes to the minimum wage UK employees who are between the ages of 16 and 17 receive a rate of £3.40 per hour. This wage rises for employees aged between 18 and 21. That band is known as the development rate, which is £4.60 per hour. If your employees over 22 are in the first six months of their job, then you may choose to pay them this rate, and it may also apply to workers who are following an accredited training programme. The highest band, which applies to most employees is for workers over 22. This rate is £5.52 an hour, and even part time workers or those who do casual work are entitled to this.

Of course, just as you get used to the existing minimum wage UK employers will find that it changes again. The increase happens in October each year and the new rates for October 2008 have already been published. With effect from then, school leavers will receive £3.53 per hour, the development rate will be £4.77 an hour, and the adult rate will be £5.73 per hour.

 

Deminos are HR Outsourcing and employment law specialists. To find out more please call us on 0191 460 1111 or visit http://www.deminos.co.uk

Next >