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NATIONAL
MINIMUM WAGE
A short
guide for workers
What is the national
minimum wage?
The minimum wage is a
legal right which covers almost all workers in the UK. It became law on 1 April
1999. On 1 October 2003 the main rate of the minimum wage was raised to £4.50
an hour, from £4.20 an hour. The main rate applies from a worker's 22nd
birthday.
On 1 October 2003 the youth rate of the minimum wage for workers aged 18-21
(inclusive) was raised to £3.80 an hour, from £3.60 an hour.
If you are starting a new job with a new employer and are aged 22 or over and
you are being provided with accredited training, you will have to be paid from 1
October 2003 at least £3.80 an hour (previously £3.60) for the the first six
months of your employment. In this case, you will have to come to an agreement
with your employer committing him or her to providing training on at least 26
days during that six-month period. A
detailed guide to the national minimum wage
(293Kb)
explains which kinds of training are accredited.
Does it affect me?
Most workers in the UK, including homeworkers, agency workers, commission
workers, part-time workers, casual workers and pieceworkers, are entitled to the
minimum wage.
What counts as pay?
If you want to check
whether the pay you get is in line with the minimum wage, not all the money you
receive each week or month counts. While incentives, bonuses and
performance-related pay do count as pay for the purposes of the minimum wage,
allowances such as regional allowances which are not consolidated into your
basic pay do not count. Neither does any extra money above basic rates that you
receive for working overtime or working shifts.
Benefits in kind such as
uniforms, meals, or private health insurance do not count. The only benefit in
kind which does count is accommodation. There are special rules for calculating
the value of your accommodation which counts towards the minimum wage.
For a complete list of what does and does not count as pay, see
A
detailed guide to the national minimum wage
(293Kb).
What counts as hours?
The hours for which your employer must pay you at least the minimum wage are
calculated differently according to the type of work you do. There are four
distinct types of work:
- If you are paid for
working a set number of hours or a set period of time, you are doing time
work;
- If you have a contract
to work for a set number of basic hours each year in return for an annual
salary paid in equal instalments (for example each week or each month), you
are doing salaried-hours work;
- If you are paid
according to the number of things you produce or the number of deals or
sales that you make, you are doing output work;
- If you have to do a
number of specific tasks, but do not have any set hours, you are doing
unmeasured work. There is an option for you to have a written agreement with
your employer setting out the average number of hours you should work each
day.
A
detailed guide to the national minimum wage
(293Kb)
provides more information on all these types of work and on employee agreements.
How can I make sure I get the national minimum wage?
As long as you are entitled to the minimum wage, your employer cannot force you
to accept a lower rate of pay. Even if you sign a contract agreeing to receive a
lower rate of pay, this will have no legal effect.
If you think you are being paid less than the minimum wage, you have a right to
see your records about it. As long as you make your request in writing, your
employer must by law supply the records within 14 days. This deadline can be
extended with your agreement.
If you have any problems or questions about the minimum wage, or want to make a
complaint that you are not getting the minimum wage, you should call the minimum
wage helpline on 0845 6000 678. Calls are dealt with in confidence and you
can remain anonymous if you wish. But if you want minimum wage officers to try
to get any underpayments back for you, it will be easier for them to take the
necessary action if they know your name and details. Officers may have to name
you to your employer at a later stage in the enforcement process (for example if
they need to go to an employment tribunal on your behalf to force the employer
to pay up). They will not do this without checking with you first. You can also
take your case to an employment tribunal or a civil court. You are legally
protected against being sacked or victimised by your employer over your
entitlement to the minimum wage and over any action you may take to enforce your
rights.
How can I find out more?
If you have any questions about the minimum wage
or if you wish to make a complaint about underpayment, call the minimum wage helpline on
0845 6000 678. The helpline is run by the Inland
Revenue on behalf of the DTI.
Calls will be charged at local rate. To help us improve the quality of our
service, your call may be monitored or recorded.
For 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
(293Kb)
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 available in certain ethnic
minority languages (Arabic, Bengali, Gujarati, Hindi, Punjabi, Urdu, Chinese,
Greek, Somali, Turkish and Vietnamese). Call 0870 1502 500 or write to DTI
Publications Orderline, Admail 528, London SW1W 8YT.
This document is also available in large print, Braille and on audio cassette on
demand. Call 0845 602 4027, or write to DTI 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 in this document is intended to provide general guidance only.
It should not be regarded as a complete and authoritative statement of the law.
National
minimum wage home page
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