The National Minimum Wage is the minimum that you can be paid for each hour that you work. The latest rates apply from 1 October 2007:
if you are 22 or over you should get at least £5.52 an hour;
if you are aged 18 to 21 you should get at least £4.60 an hour;
if you are 16 or 17 you should get at least £3.40 an hour.
Tips given directly to you do not count, but any paid through your pay packet do.
But there are two complications:
If accommodation is provided for you, a maximum of £30.10 a week can be deducted from the National Minimum Wage to pay for this (or £4.30 per day where less than a full week’s accommodation is provided).
No deductions can be made for any meals or other refreshments that are provided. If transport is provided to get you to and from work, a deduction can be made. There is no limit on this and it is a common source of abuse.
Some workers have no fixed hours, but are paid by what they produce (their output) or paid on completion of a specific job and for these workers the situation is more complicated. From April 2005, an employer will either have to pay the worker the minimum wage per hour for all hours worked or will have to pay 120% of the minimum wage for the number of hours it takes an average worker to complete an agreed block of work.
The employer will have to carry out tests to establish the time it takes an average worker to complete the work. For example, if the tests show that for a particular job, the average worker can complete 10 pieces an hour, the employer must pay the workers at least 66.2 pence per piece in order to pay the current national minimum wage rate of £5.52 per hour (£5.52 times 120% divided by 10 pieces equals 66.2p).
The 120% calculation has been introduced to reflect that whilst the average (mean) worker may complete the work that quickly, this means that 50% of workers will complete it more slowly, and so be paid under the minimum if it were set only at 100% of the National Minimum Wage. The 120% calculation brings a higher proportion of piece rate workers under minimum wage protection.
If you think that you are not being paid the minimum wage you can make a complaint directly to the NMW Helpline on 0845 6000 678 (England, Scotland or Wales) or 0845 6500 207 (Northern Ireland). You can also seek further advice from your union if you are a member or from an advice agency.
If you are working in the agricultural sector, you will be covered by the Agricultural Wages Board. This sets rates of pay (which may be higher than the National Minimum Wage), as well as hours, holidays and overtime rates. For more information, phone the Defra agricultural wages helpline on 0845 0000 134.
