image
image
image


National Minimum Wage 2009 - 2010

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 2009-2010:

Adults already on the minimum wage will receive the following rates: 

Date

Age

Minimum Rate Per Hour

From 1st October 2009 16 - 17 years old £3.53
From 1st October 2009 18 - 21 years old £4.77
From 1st October 2009 Over 21 £5.73

New reporting deadline for the Low Pay Commission for 2009-2010

Recently, the Government asked the Low Pay Commission to report to the Prime Minister and Secretary of State for Business, Enterprise and Regulatory Reform (BERR) by the end of February 2009. This deadline has been extended to 1 May 2009 due to the current recession.

Commenting on the extension, Professor Sir George Bain, Chairman of the Commission, said:

"The Low Pay Commission has always based its recommendations on research, evidence and analysis of economic data. This year, the National Minimum Wage faces up to its first recession. By delaying its report until 1 May, the Commission will have access to two month's additional data, including the Bank of England's next Inflation Report, employee jobs figures for December 2008, GDP figures for the fourth quarter of 2008 and updates on average earnings. The delay will not have an impact on the planned date for implementation of the new rates, 1 October 2009."

 

Employees Rights

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 £4.77 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.

It is illegal for an employer to pay less than the minimum wage. The six potential criminal offences under section 31 of the NMW Act are:

  •  Employer refuses or wilfully neglects to pay NMW
  •  Person fails to keep or preserve records
  •  Person knowingly causes or allows false entry in records
  •  Person produces or furnishes false records or information
  •  Person delays or obstructs compliance officer
  •  Person refuses or neglects to answer any questions or produce documents for compliance officer

Each criminal offence carries a maximum £5,000 fine and a criminal record.


http://www.berr.gov.uk/employment/pay/national-minimum-wage/

   

Minimum wage helpline - http://www.hmrc.gov.uk/nmw/help.htm

Low Pay Commission - http://www.lowpay.gov.uk/

This page was last updated 24/01/2010


image
image