THE National Minimum Wage determines the rate of pay for millions of workers in the UK.
The government sets the rate and has recently been boosted meaning a £1,800 pay rise this year for hard-working Brits, here we explain exactly what it is.
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What is the National Minimum Wage?
There are two different minimum rates all workers should get across the UK – the National Minimum Wage and the National Living Wage.
The National Minimum Wage (NMW) is the minimum pay per hour for workers of school-leaving age.
Meanwhile, the National Living Wage is the minimum wage for those over 23, and is slightly higher.
But both are different from the Real Living Wage – a voluntary minimum that some employers commit to paying, which is £12 or £13.15 in London as of October 2023.
The first National Minimum Wage was put in place in 1998 by the Labour government.
It originally applied to workers aged 22 and over, and there was a separate rate for those aged 18-21.
A separate rate for 16-17-year-olds was introduced in 2004, and in 2010, 21-year-olds became eligible for the adult rate of the National Minimum Wage.
The rate is set by the Government each year based on recommendations by the Low Pay Commission (LPC).
Millions benefit from the annual increases, as workers struggle with rising inflation and the cost of living.
What are the National Minimum Wage rates?
The National Minimum Wage is the amount workers under 23 (but of school-leaving age) are entitled to.
However, this age will drop from April 1, 2024, and workers aged 21 and over will be entitled to the National Living Wage.
Exactly what you’ll get depends on how old you are.
Here are the rates that will come into force from April 1, 2024
- Those aged 21 and over will get £11.44 rather than the current rate of £10.42
- For 18 to 20-year-olds, the rate will be £8.60, an increase of £1.11 on the previous wage of £7.49
- 16 to 17-year -olds will get £6.40, an increase of £1.12 on the previous rate of £5.28
- The apprentice wage will increase from £5.28 to £6.40
Who gets the National Minimum Wage and am I entitled?
To qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16.
You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer – for example, someone hired for one day.
You are also entitled to the National Minimum Wage if you are an agency worker or someone paid by the number of items you make.
Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.
The rates also apply to disabled workers.
Anyone who thinks they are not getting paid fairly should raise the issue with their employer in the first instance.
If this is not effective, the next step is to file a complaint on the government’s website.
Employers who do not pay the minimum wage can be publicly “named and shamed”.
Those who blatantly fail to comply are also at risk of facing criminal prosecution.
Which workers do not qualify for the National Minimum Wage?
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.
