The introduction of a National Minimum Wage (NMW) was a major feature of the Labour Party's 1997 manifesto and was introduced on 1 April 1999.
Since that time, workers cannot be paid and cannot agree to accept a rate of pay lower than the prevailing NMW (currently £5.73 p/hr for those aged 22+).
The NMW rate is reviewed every year and any changes take place on 1 October.
From tomorrow (1st October 2009) the new rates will be:
- £5.80 an hour for adults (workers aged 22 and over)
- £4.83 an hour for workers aged 18 to 21 inclusive
- £3.57 an hour for young people
With increased penalties from 6th April 2009 for those who find themselves paying less than the NMW, those of you with more complex pay arrangements (e.g. piece rate or commission based workers) may wish to seek specialist advice to ensure that your own pay arrangements are fully compliant.
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