National Minimum Wage increase in October 2008
We would like to remind all employers that on 1 October 2008 the National Minimum Wage in the UK will be going up as follows:
Workers aged 16 and 17 and above school leaving age – from £3.40 an hour to £3.35 an hour.
Workers aged 18 to 21 – from £4.60 an hour to £4.77 an hour.
Workers aged 22 and over – from £5.52 an hour to £5.73 an hour.
The new rates are payable for the first pay period starting after 1 October. For example, if you pay your employees on 12 October for work done in the 2 weeks to 5 October, you only need to pay this period at the old rates. You would start to pay the new rates for hours worked after 6 October.
The National Minimum Wage applies to most employees, including part time workers, short term workers, pensioners, piece workers, homeworkers, workers on commission and workers from overseas. An employer may not force or persuade any worker to agree to a wage below the minimum wage. The law prevents workers from signing away their right to the minimum wage.
A worker becoming 22 is entitled to the main rate for the first pay reference period after his 22nd birthday.
For hourly-paid workers, at least the National Minimum Wage has to be paid for time that includes training, and travel during normal work hours (but not between home and work).
Benefits in kind, such as meals, company cars, medical insurance and company pensions do not count as pay for National Minimum Wage purposes.
Tips that have been collected and then paid out by the employer (deducting tax in the process) can count towards National Minimum Wage pay, but tips paid directly to staff or through a troncmaster do not. The government are currently reviewing this situation with a view to making changes.