NATIONAL
MINIMUM WAGE
A short
guide for young workers
If you're 18-21
(inclusive) and working, then £3.80 per hour is the least you can expect.
What is the national
minimum wage?
The minimum wage is the
minimum level of pay to which almost all workers in the UK have a legal right.
It became law on 1 April 1999. On 1 October 2003 the minimum hourly rate for
18-21 year olds (inclusive) was raised to £3.80 an hour, from £3.60 an hour.
Your employer will be breaking the law if he or she does not pay you the amount
you are entitled to.
Why is there a lower rate
for young people?
The Government has taken advice from an independent body called the Low Pay
Commission (LPC) on the level of pay rates. The LPC found that in countries
where all workers, regardless of age, are entitled to the same minimum rate,
youth unemployment tends to be higher. This is because employers tend to recruit
older, fully trained or more experienced workers if there is no lower minimum
for people below a certain age.
Remember that the rate for
young people is only the legal minimum. Employers can and often do pay more than
the minimum wage.
What about people under
18?
The minimum wage does not
presently apply to the under-18s. The Government has however agreed that this
issue merits further consideration and has asked the LPC to report on the
possible advantages and disadvantages of a minimum wage for 16-17 year olds by
February 2004.
Does the national minimum wage apply to trainees?
The minimum wage applies to workers. This means people who work under a contract
for an employer. If you are a trainee who does no work at all, you do not count
as a worker and therefore are not entitled to the minimum wage. However, there
are many kinds of trainees who work under a contract for an employer. Different
rules apply depending on the type of trainee (e.g. Government trainees, sandwich
course students, apprentices). Check the
rules by consulting the Detailed guide to the national minimum wage
(293Kb)
(phone up
the information line on 0845 8450 360 to order the guide) or you can talk
to someone on the helpline on 0845 6000 678 or visit our website.
What if my employer wants
me to work for less than the national minimum wage?
If you are entitled to the
minimum wage, then your employer must pay it. If he does not, he is breaking the
law.
What if my employer says I'm not entitled to the national minimum wage because I
work part time?
It makes no difference whether you work part time or full time. The law applies
to almost all workers, including those taken on casually without written
contracts, those who work from home and those who are paid by commission. Check
your entitlement to the minimum wage by ringing the helpline on 0845 6000 678.
What if my employer says
he will make up the rest of my pay with 'benefits in kind'?
There are strict rules
about benefits in kind and the minimum wage. Some jobs provide benefits as well
as payment in wages, such as free meals and accommodation or discounts off
company products. The only benefit that an employer can count against the
minimum wage is accommodation. There are special rules for calculating the value
of your accommodation which counts towards the minimum wage.
What if I am not being paid the national minimum wage?
The Government takes non-compliance with the minimum wage seriously and has set
up an enforcement body to deal with all complaints. So if you are not being paid
what you are entitled to, call the helpline on 0845 6000 678 (calls are charged
at local rates).
Alternatively, you can consult a Citizens Advice Bureau, trade union, low pay
unit or other advice centre, who will advise you about taking your case to an
employment tribunal.
However, in most cases, we advise you to call our helpline direct. You don't
have to give your name but if you want our officers to try to obtain your
underpayments, giving them your name and contact details will help them. They
may have to name you to your employer at a later stage in the enforcement
process (e.g. when attending an employment tribunal on your behalf) but they
will not do this without asking you first.
How can I find out more?
Contact the minimum wage helpline on 0845 6000 678 to ask questions, seek
confidential advice or to report underpayment. The helpline is run by the Inland
Revenue on behalf of the DTI.
To order a copy of more detailed guidance, call the minimum wage
information line on 0845 8450 360 and ask for your free copy of A detailed guide
to the national minimum wage. Calls will be charged at local rates. To help us
improve the quality of our service, your call may be monitored or recorded. This
is for internal training purposes only.
Alternatively, you can write to minimum wage enquiries, Freepost PHQ1, Newcastle
upon Tyne NE98 1ZH or visit the DTI minimum wage website.
This document is also available in large
print, Braille and on audio cassette on demand. Call 0845 602 4027, or write to
DTI National Minimum Wage, Freepost SE2693, London SE5 7XU.
For copies of the National Minimum Wage Act 1998 and the National Minimum Wage
Regulations 1999, call the Stationery Office Parliamentary hotline on 0845 7023
474.
The information contained in this document is intended to provide general guidance only.
It should not be regarded as a complete and authoritative statement of the law.
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minimum wage home page
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