Legislation

The national minimum wage is set by the Government and aimed at providing employees with decent minimum standards and fairness in the workplace. It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay.

There is a main rate for adult workers and a development rate for young workers or those in their first 6 months in a new job with a new employer and who are receiving accredited training. There is also a young workers rate for school leavers and special regulations on piece rates.

As an employer, you must keep records to prove you are paying the national minimum wage.

Employers refusing to pay the national minimum wage or failing to keep adequate records are liable to fines.

To check on how the National Minimum Wage applies to you (or your staff), telephone the National Minimum Wage Helpline on 0845 6000 678. You may also email the helpline from the Inland Revenue's NMW website.

The rates set are based on the recommendations of the independent Low Pay Commission and are reviewed at intervals. To check on the current rates visit www.dti.gov.uk/er/nmw/.

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