The
National Minimum Wage
The National Minimum Wage was introduced by the National Minimum Wage Act 1999 which came into effect on 1 April 1999. The detailed provisions are contained in Regulations issued under the Act.
So
whom does the National Minimum Wage cover?
National Minimum Wage applies to all workers, with certain exceptions such as:
• Those who are under the age of 18
• Apprentices under the age of 26 during their first year of apprenticeship
• Those who are genuinely self employed
• Family members working in the family business
• People working and living as part of a family (eg au pairs)
• Voluntary workers
What is the rate of National Minimum Wage
The standard rate is £5.80 per hour for workers over 22, with a modified rate of £4.83 for 18-21 year olds and workers receiving accredited training during their first six months of a new job with a new employer.
How is the National Minimum Wage calculated?
The Regulations set out a rather complex procedure detailing the calculation of the National Minimum Wage.
Benefits in kind, expenses, certain allowances and most deductions are not included. Enhanced payments for particular work will not count, but incentive or profit related payments would be included
What
working time counts for National Minimum Wage?
Job-related traveling and training time is included. Periods of holiday or absence do not count (even though holiday pay is now obligatory), nor does time taken as rest breaks or industrial action.
What
if the pay is not time-related?
Piece workers and other non-time workers (eg pub landlords) may come to an agreement with their employer about a fair estimate of hours.
For more information please call our office on 0115 978 5244