National Minimum Wage

The UK national minimum wage is aimed at providing employees with decent minimum living standards. It is illegal for an employer to pay less than the minimum wage. Children and young workers aged 16 and 17 are now covered by the minimum wage. The hourly rates shown below are the minimum amount of pay that workers aged 16 years or older are entitled to.

There are currently  three levels of minimum wage:

From 1 October 2006, Adults already on the minimum wage will receive 20p per hr increase and must be paid at least £5.35 an hour.  18 to 21 year olds will get a development rate of £4.45 per hour, an increase of 20p phr.  The increase follows the recommendation from the Low Pay Commission. The minimum wage was introduced in April 1999.

Date

Age

Minimum Rate Per Hour

From 1st October 2006 16 - 17 years old £3.30
From 1st October 2006 18-21 years old £4.45
From 1st October 2006 Over 21 £5.35
From 1st October 2007 16 - 17 years old £3.40
From 1st October 2007 18-21 years old £4.60
From 1st October 2007 Over 21 £5.52

 

Please note that employees over 22 on accredited training can also receive the development rate for the first six months of employment.

 The development rate, which applies to workers aged 18-21 inclusive, is £4.35 per hour starting a new job with a new employer and doing an accredited training course approved by the UK Government to obtain a vocational qualification. 

Our UK payroll service  is tailored for all small businesses who are looking to outsource their salaries. 

If you are already outsourcing your payroll, are you getting a good deal?  Check our online payroll outsourcing questionnaire.

 

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