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The National Minimum Wage came into force on 1st April 1999. It applies to
most workers, including part-time workers, homeworkers, agency workers,
commission workers, pieceworkers, freelance workers, casual workers,
temporary workers, students, retired people and pensioners.
 How much?
• In most cases workers
aged 22 or over
£4.50 per hour from October 2003
• Workers aged 18 - 21
£3.50 per hour development rate (£3.60 on 1st October 2002)
• New workers aged 22 or over and getting
accredited training
£3.80 per hour for the first 6 months then £4.50 per hour. This
is known as a development rate
For the £3.80 development rate to apply the worker must start with a new
employer and not be:-
• in a company or organisation taken
over by new owners
• transferred within the same
organisation or
• taking on new duties
The worker must be receiving accredited training on at least 26 days
of the first 6 months (can be separate days). Even if the training lasts for
more than 6 months the lower rate cannot last longer than this period.
From October 2004 16-17 will be included in the minimum wage at £3.00 an
hour.
Exclusions
• school children (i.e.
those under the legal school leaving age)
• members of the Armed Forces
• people who normally work outside the
UK
• the genuinely self-employed
• those in the fishing industry paid
only by a share of the profits of the fishing vessel.
• voluntary workers who are paid out of
pocket expenses only
• prisoners
• members of the employer’s family
• workers on work experience who are not
trainees with a contract of employment
• workers under 18
• apprentices under 19 and those under
26 in the first year or their apprenticeship
• trainees on Government funded schemes
unless they are employees
• students on sandwich courses and
teacher trainees
• homeless people on schemes where they
do some work in exchange for shelter
• people living and working for families
e.g. au pairs and nannies
Apprentices
The National Minimum Wage does not have to be paid to
apprentices who are under the age of 19
• Apprentices as far as the National
Minimum Wage is concerned are either:
workers who have a
contract of apprenticeship
or
workers who are taking part in the specific Government’s training programme
known as National Traineeships or Foundation or Advanced Modern
Apprenticeships
Therefore, those who start apprenticeships at age 16 or 17 and continue at
age 18 will not need to be paid the National Minimum Wage until they reach
19, when they will qualify for the £3.50 an hour rate.
Apprentices aged under 26 who are in the first 12 months of their
apprenticeship do not need to be paid under the National Minimum wage e.g.
someone starting an apprenticeship just before their 19th birthday would not
need to be paid the National Minimum Wage until just before their 20th
birthday. If an apprentice becomes 26 during the first year of their
apprenticeship they will be entitled to the £4.10 an hour rate from their
birthday.
People who start an apprenticeship at age 26 or above must be paid the
National Minimum Wage.
Some Trainees on Government Funded
Schemes
The National Minimum Wage only needs to be paid to trainees for activities
carried out on Government funded training programmes if they are employed by
the Employer with whom they are placed under the scheme. This means trainees
aged 18 and above will have to be paid the National Minimum Wage if they are
entitled to receive wages from the Employer in return for their work.
Currently the main Government funded schemes are:
• New Deal
• Work Based Learning for Adults
• National Traineeships
• 'Work Trials' Scheme
• Other Work Based Learning (e.g
employed status trainees)
The above is a general outline only and should not be regarded as a
complete and authorative statement of the law
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