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The National Minimum Wage became effective from 1 April 1999.
| Rates effective from - | Adult rate | Development rate | 16 & 17 year olds |
| 1 October 2008 | £5.73 | £4.77 | £3.53 |
| 1 October 2007 | £5.52 | £4.60 | £3.40 |
| 1 October 2006 | £5.35 | £4.45 | £3.30 |
| 1 October 2005 | £5.05 | £4.25 | £3.00 |
| 1 October 2004 | £4.85 | £4.10 | £3.00 |
| 1 October 2003 | £4.50 | £3.80 | Not applicable |
| 1 October 2002 | £4.20 | £3.60 | Not applicable |
| 1 October 2001 | £4.10 | £3.50 | Not applicable |
| 1 October 2000 | £3.70 | £3.20 | Not applicable |
| 1 June 2000 (Development rate only) | £3.60 | £3.20 | Not applicable |
| 1 April 1999 | £3.60 | £3.00 | Not applicable |
The Adult rate applies to workers aged 22 and over (except those receiving accredited training during their first year in a new job with a new employer who may be paid the Development rate).
The Development rate applies to workers aged 18 to 21 inclusive.
The rate for 16 & 17 year olds is introduced from 1 October 2004 to apply to all 16 year olds who are no longer of compulsory school age and all 17 year olds. In England and Wales a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs.
Apprentices aged 16 to 18 are exempt from the
minimum wage but apprentices aged 19 and above qualify for the minimum wage after the first twelve months of their apprenticeship.Pay Reference Period (PRP) - The maximum PRP will be one calendar month, but for workers paid more frequently (e.g. weekly) that period will be used instead.
Workers can receive less than NMW for some hours worked so long as the average in a PRP equals the NMW.
There are special rules for piecework and live in workers. A new system called "rated output work" came into effect for pieceworkers from 1 October 2004.
NMW is not payable for 'stand by' time where the worker is away from the employer's premises, or for time spent asleep on the premises.
Where an employer provides a worker with living accommodation, this can constitute an amount of pay equal to £4.30 per day from 1 October 2007, up from £4.15 from 1 October 2006 and prior to that £3.90 for each day that accommodation is provided.
In order to show the minimum wage is being paid, employers need to keep records of hours worked.
Directors of Limited Companies do not necessarily have to receive the minimum wage unless they have an employment contract.
Unpaid volunteers, perhaps receiving expenses, may be exempt from NMW if they are not workers, but a Charity paying a flat rate allowance in lieu of expenses will be subject to NMW.
See also Employment Status, Contract of Employment, Working Time Regulations, PAYE, NIC, SSP, SMP, SPP, SAP, Student Loans.
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 5 April 2008