Almost every UK worker over compulsory school age is legally entitled to be paid at least the National Minimum Wage. This is obligatory regardless of any working conditions and agreed terms.
Entitlements are due…
- whether the worker is paid monthly, weekly, in cash or by other means.
- whether the worker works full-time, part-time or in any other way.
- whether the worker works within the premises or somewhere else.
- even if a worker has signed a contract agreeing to be paid at a lower rate; this contract has no legal effect and workers must still be paid the minimum wage.
The only exceptions to the NMW are self employed individuals and children of compulsory school age.
HMRC enforces the National Minimum Wage. From the 6th of April 2009, if HMRC finds you have underpaid the national minimum wage, you will be issued a notice of underpayment. This will show the penalty you must pay to HMRC and the arrears you must pay to your workers.
The current minimum wage from the 1st of October 2011 is now:
- £6.08 – the main rate for workers aged 21 and above
- £4.98 – the age 18-20 rate
- £3.68 – the age 16-17 rate for workers above school leaving age but under 18
- £2.60 – the apprentice rate, for apprentices under 19 or above and in the first year of their apprenticeship
For help with managing payroll and ensuring compliance, contact us by completing the contact form on this site or email email@example.com . For more information about minimum wage, please go to direct.gov.uk