Minimum Wage

Almost all UK workers have a legal right to a minimum level of pay, called the National Minimum Wage. The level is set by the government each year based on the recommendations of the independent Low Pay Commission (LPC).

What is the National Minimum Wage?

National Minimum Wage Helpline 0845 6000 678

With a few exceptions, all workers in the UK aged 16 or over are legally entitled to be paid a minimum amount per hour. This is regardless of the kind of work they do or the size and type of company. The rate is reviewed every year, and any increases take place in October.

New National Minimum Wage rates from 1 October 2010

The national minimum wage rate effective from 01st October 2010 are:

These rates are likely to change from 01st October 2011.

Development Rate

The development rate for workers age 22 and over was abolished for pay reference periods starting on or after 1 October 2006. From that date, all workers aged 22 and over who qualify for the national minimum wage will be entitled to the main rate of national minimum wage. This applies even where the worker was previously in receipt of the development rate for those aged 22 and over and had been receiving that rate for less than 6 months.

Compulsory School Age

In England and Wales: a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs.

In Scotland: pupils whose 16th birthday falls between 1 March and 30 September may not leave before the 31 May of that year. Pupils aged 16 on or between 1 October and the last day of February may not leave until the start of the Christmas holidays in that school year.

In Northern Ireland: a person is no longer of compulsory school age after the 30th June of the school year in which their 16th birthday occurs.

Accommodation offset

The daily rate of the accommodation offset is £4.51 (£31.57 per week) for each day that accommodation is provided.

Who can get the National Minimum Wage

Almost everyone who works in the UK is legally entitled to be paid the National Minimum Wage. This is the case even if an employer asks a worker to sign an employment contract at a lower rate of pay. It isn't necessary to be in full-time employment, or to work at an employer's premises. For example, you're entitled to receive the minimum wage if you're:

• employed by an agency
• a homeworker
• 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

Further guidance is available from the Department for Business, Enterprise and Regulatory Reform (BERR).