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National Minimum Wage

The National Minimum Wage (NMW) is the minimum amount per hour that most workers in the UK over compulsory school leaving age are entitled to be paid. To qualify, employees must be working legally in the UK, not genuinely self-employed and have a written, oral or implied contract.

Workers are still entitled to receive NMW even if they sign a contract agreeing to be paid less than the minimum. The contract is not legally binding, and they must be paid the proper amount.

There are three rates of NMW, based on the age of the employee, which are reviewed annually. Any changes to the rates come into force on 1st October.

The current rates per hour are:

  • Adults: £5.73 (for workers aged 22 and over)
  • Developmental rate: £4.77 (for workers aged 18 to 21 inclusive)
  • Youth rate: £3.53 (for all workers under the age of 18, but over compulsory school leaving age)

From 1st October 2009, these will increase to:

  • Adults: £5.80
  • Development Rate: £4.83
  • Youth Rate: £3.57

Please note that apprentices under the age of 19, or over 19 and in the first 12 months of their apprenticeship will not qualify for NMW.

© Copyright JE Consulting 2009. All rights reserved.

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