National Minimum Wage..

What is the national minimum wage?

The national minimum wage is the minimum level of pay to which almost all workers in the UK have a legal right. It became law on 1 April 1999. The minimum hourly rate for 18-21 year olds is £3.00, rising to £3.20 from 1 June 2000. The minimum hourly rate for 22 year olds and over is £3.60, rising to £3.70 from 1 October 2000.

Your employer will be breaking the law if he or she does not pay you the amount you are entitled to.

What about people under 18?

The minimum wage does not apply to the under-18s.

Why is there a lower rate for young people?

The Government has taken advice from an independent body called the Low Pay Commission (LPC) on the level of pay rates. The LPC found that in countries where all workers, regardless of age, are entitled to the same minimum rate, youth unemployment tends to be higher. This is because employers recruit older, fully trained or more experienced workers if there is no lower minimum wage for people below a certain age.

Remember that the rate for young people is only the legal minimum. Employers can and often do pay more than the minimum wage.

Does the minimum wage apply to trainees?

The minimum wage applies to workers. This means people who work under a contract for an employer. If you are a trainee who does no work, you do not count as a worker and therefore are not entitled to the minimum wage. However, there are many kinds of trainees who work under a contract for an employer. Different rules apply depending on the type of trainee (e.g. Government trainees, sandwich course students, apprentices). Check the rules by phoning the helpline on 0845 6000 678.

What if my employer wants me to work for less than the minimum wage?

If you are entitled to the minimum wage, then your employer must pay it. If they do not, he/she is breaking the law.

What if my employer says I’m not entitled to the minimum wage because I work part time?

It makes no difference whether you work part time or full time. The law applies to almost all workers, including those taken on casually without written contracts, those who work from home and those who are paid by commission. Check your entitlement to the minimum wage by ringing the helpline on 0845 6000 678.

What if my employer says he/she will make up the rest of my pay with ‘benefits in kind’?

There are strict rules about benefits in kind and the minimum wage. Some jobs provide benefits as well as payment in wages, such as free meals and accommodation or discounts off company products. The only benefit that an employer can count against the minimum wage is accommodation, where 50p an hour for each hour worked may be deducted from your minimum wage, up to a maximum of £19.95 a week. No other benefits in kind affect the minimum wage.

What if I am not being paid the minimum wage?

The Government takes non-compliance with the minimum wage seriously and has set up an enforcement body to deal with complaints. So if you are not being paid what you are entitled to, call the helpline on 0845 6000 678 (calls are charged at local rate). The line handled 120,000 calls and complaints last year and enforcement officers obtained over £1 million of back pay for workers who had been underpaid.

Alternatively, you can consult a Citizen’s Advice Bureau, trade union, low pay unit or other advice centre, who will advise you about taking your case to an employment tribunal.

However, in most cases, we advise you to call our helpline direct. You don’t have to give your name but if you want our officers to try to obtain your underpayments, giving them your name and contact details will help them. They may have to name you to your employer at a later stage in the enforcement process (e.g. when attending an employment tribunal on your behalf) but they will not do this without asking you first.

How can I find out more?

Contact the National Minimum Wage Helpline 0845 6000 678 for confidential advice or to report underpayment.

Calls will be charged at local rates. to help us improve the quality of our service, your call may be monitored or recorded. This is for internal training purposes only.

The information on this site is intended to provide general guidance only. It should not be regarded as an authoritative statement of the law.