Changes to National Minimum Wage have been implemented on 1 October 2014.
There are different rates of national minimum wage for four categories of worker:
- Standard adult rate. This rate applies to workers aged 21 or over (there is no upper age limit) (National Minimum Wage Act 1998).
- Development rate. This rate applies to workers aged between 18 and 20 inclusive (regulation 13(1), National Minimum Wage Regulations 1999 (SI 1999/584) (NMWR 1999))
- Young workers rate. This rate applies to workers aged under 18 but above the compulsory school age who are not apprentices (regulation 13(2), NMWR 1999).
- Apprenticeship rate. This rate applies to apprentices under 19 years of age or those aged 19 and over but in the first year of their apprenticeship (regulation 13(3), NMWR 1999).
If an employer provides a worker with free accommodation, some of its value can be counted towards NMW pay (regulation 36, NMWR 1999). This is the “accommodation offset”. An employer cannot offset more than the accommodation offset limit.
These figures are reviewed each year, following recommendations by the Low Pay Commission. The figures which are applicable from 1 October 2014 – 30 September 2015 are below.
|Standard adult rate (minimum hourly rate)||Development rate (minimum hourly rate)||Young workers rate (minimum hourly rate)||Apprenticeship rate (minimum hourly rate)||Accommodation offset limit (maximum daily deduction from NMW)|
|1 October 2014 – 30 September 2015||£6.50||£5.13||£3.79||£2.73||£5.08|
|1 October 2013 – 30 September 2014||£6.31||£5.03||£3.72||£2.68||£4.91|
For more information, help or advice please contact Lisa Kelly on 0191 211 7897.