National Minimum Wage increase
by David Clifton of thePublican.com's legal team of experts from London solicitors Joelson Wilson
The national minimum wage is the minimum hourly wage that employers must pay their employees, under the National Minimum Wage Act 1998.
The minimum levels are set by the government following receipt of advice from the Low Pay Commission.
On March 19 the government announced that it had accepted the Commission's recommendations that with effect from October of this year:
- The main (adult) rate for workers aged 22 and over would increase from £4.20 per hour to £4.50 - with a further increase to £4.85 in October of next year
- The youth rate for workers aged 18 to 21 inclusive would increase from £3.60 per hour to £3.80 - with a further increase to £4.10 in October of next year.
Currently the national minimum wage only applies to persons aged 18 or over, but subject to that qualification, all workers who are not genuinely self-employed are entitled to the minimum wage (whether they are actually paid hourly, weekly, monthly or on an annual or any other basis).
However, the government has announced that it is asking the Commission to look at the advantages and disadvantages of introducing a minimum wage for 16 and 17-year-olds too.
The National Minimum Wage Act 1998 allows for the appointment of enforcement officers to act on behalf of employees and created a number of criminal offences.
Workers have the right to receive the minimum wage and not to suffer any unauthorised deductions and they can enforce these rights in an employment tribunal or Civil Court.
For further information on the minimum wage you can telephone 0845 6000 678 or log on to the DTI's interactive website at www.tiger.gov.uk
