The National Minimum Wage 2004

The last change in the National Minimum Wage was on 1st October 2004 (rates below).

"The national minimum wage is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace. It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay. The rates set are based on the recommendations of the independent Low Pay Commission.

The National Minimum Wage is currently set as follows:

• Workers aged between 18 and 21 inclusive years old: no less than £4.10 per hour
• Workers aged 22 years old and over: no less than £4.85 per hour
• Workers aged 22 years old and over who have started a new job with a new employer and do accredited training should be paid no less than £4.10 per hour for the first six months only
• A new rate for 16 and 17 year olds will mean they should be paid no less than £3.00 per hour, although this excludes apprentices.

If your business pays any employees (particularly homeworkers) using a piece-rate system, then you also need to be aware of the changes that have applied since October 1^st 2004 to the minimum you can pay per unit. Details of these changes are available here.

To check on how the National Minimum Wage applies to you (or your staff), use the TIGER interactive website (www.tiger.gov.uk) or telephone the National Minimum Wage Helpline on 0845 6000 678.

This is also the number to ring if you think you are being underpaid and wish to make a complaint. You may also email the helpline from the Inland Revenue's NMW website: www.inlandrevenue.gov.uk/nmw/nmw_complaint.htm. All complaints about underpayment of the National Minimum Wage are treated in the strictest confidence.