National Minimum Wage
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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 has increased again from October 2007
The minimum wage is a legal right which covers almost all workers
above compulsory school leaving age. There are different minimum
wage rates for different groups of workers as follows:
The main rate for workers aged 22 and over increased on 1 October
2007 to £5.52 an hour from £5.35 an hour
The development rate for 18-21 year olds increased to £4.60 an hour
from £4.45 an hour
The development rate for 16-17 year old increased to £3.40 an hour
from £3.30 an hour
On 1 October 2007 the rate of the accommodation offset increased to
£30.10 per week (£4.30 per day) from £29.05 per week (£4.15 per day)
