National Minimum Wage

Since April 1999 the Government has set a minimum level of pay for workers in the UK, to help prevent the exploitation of staff and set a level playing field for employers.

The National Minimum Wage is now a legal right for most people working in Britain and employers are not allowed to pay any less than the minimum amount for each particular job.

There are several different minimum levels depending on your age and circumstances although most adult workers will be covered by the law.

You are entitled to ask for a copy of your pay records at any time and if you've received lower than the National Minimum Wage can take the employer to court or an employment tribunal.

What is the National Minimum Wage?

The National Minimum Wage sets hourly levels of pay which must be provided to workers across the UK. There are several different levels which are regularly reviewed and changed by an independent body called the Low Pay Commission.

The pay levels are different for certain groups of workers but in 2006 the following rates of pay are guaranteed by the National Minimum Wage:

• The Main Rate. This is the rate that covers most workers and applies to anyone aged 22 or older. The current National Minimum Wage for this group is set at £5.35 per hour, which rose from £5.05 per hour in October 2006.

• The Development Rate. This rate covers workers between the ages of 18 and 21. THe current rate is set at £4.45 per hour. Workers over the age of 22 but starting a new job, with a new employer as part of an accredited vocational scheme are also covered by this rate.

• The New Development Rate. In October 2004 the government introduced this new category covering 16 and 17 year olds. As of October 2006 the hourly minimum rate here is £3.30.

Any workers that are genuinely self-employed are not covered by the National Minimum Wage.

Who Decides When the Amounts Should Change?

Ultimately the Government decides on the rates of pay set down by the National Minimum Wage and this can change from year to year, normally in October.

However, the rates are based on recommendations made by an independent body called the Low Pay Commission. The body is made up of a panel of experts who carry out research, analyse statistics and meet with employers and workers.

The commission then makes a recommendation to the government based on these findings.

Who Ensures That Companies Comply with the National Minimum Wage?

The National Minimum Wage is policed by HM Revenue and Customs (HMRC). They respond to complaints from workers and visit a random sample of employers to make sure the National Minimum Wage is in place.

They operate a confidential hotline and have 16 teams of compliance officers across the country, working to ensure legal pay levels are being applied. They also inspect employers' records and help staff present cases to employment tribunals.

Since the introduction of the National Minimum Wage HMRC has dealt with more than 16,000 complaints and helped identify more than £21 million in pay arrears for workers.

What if you Get Less Than the National Minimum Wage?

For further information on the National Minimum Wage or to find out if it applies to you, call the confidential hotline on 0845 6000 678. You should also call this number if you think you are receiving less than the minimum amount for your category.