Almost everyone who legally works in the UK must get a minimum pay, which has been labelled as the National Minimum wage. This minimum level of pay has been rising every year and is due to rise again in October 2014, literally a matter of weeks away. As this is quite an important matter for companies, we’ve decided to put together this ‘All you need to know’ post about the National Minimum Wage.
The national minimum wage applies to most workers over the compulsory school age working in the UK. This includes:
The national minimum wage does not apply to:
Additionally, the rate of the wage depends on what age group you are a part of; see the table below for a breakdown of the current rates:
|21 or over||16-18||Under 18||Apprentice|
|Rate from October 2014||£6.50||£5.13||£3.79||£2.73|
The Apprentice wage is defined as an apprentice aged 16-18 or those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum wage for their age.
It is extremely beneficial in making sure you’re paying the correct amount. Employers who fail to pay their workers the correct amount can face a penalty of up to £20,000 per employee and may even be prosecuted. Here are some tips:
Those are the basic all you need to know facts about the National Minimum wage. The rate has changed annually since 2005 and has risen every year, but nevertheless, it’s worth making sure you’re prepared for the change.