Connexions Greater Merseyside

National Minimum Wage

The National Minimum Wage applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. The rates set are based on the recommendations of the Independent Low Pay Commission. It is divided into 4 age groups.

Under 16 – National Minimum Wage is not applicable

• 16 and 17 years old called the young persons rate
• 18 to 21 years old called the development rate
• 22 years and older called the adult rate

NB Apprentices under age 19 will NOT qualify for the National minimum wage

      Apprentices over age 19 and in the first 12 months of their apprenticeship

      will NOT qualify for the National minimum wage (see further information below)

The current rates for National Minimum Wage are:

• 16 & 17 years old (if no longer compulsory schools age) £3.57 per hour
• 18 - 21 years old £4.83 per hour
• 22 years and older £5.80 per hour

From 1st October 2010, the rates for National Minimum Wage will be:

• 16 & 17 years old (if no longer compulsory school age) £3.64 per hour
• 18 - 21 years old £4.92 per hour
• 22 years and older £5.93 per hour

Apprentices

The Government has accepted the Low Pay Commission's recommendation for a legal NMW for apprentices (as opposed to the current recommended minimum of £95 per week).  This will come into effect from 1st October 2010.  This means that the present exemption from NMW for apprentices will end and all qualifying apprentices in the UK must be paid at least £2.50 per hour.  This will depend on their age (see below).

On the basis of a full time week of 37.5 hours per week, this equates to £93.75.

In effect, it will become statutory law (as opposed to the current recommendation) to pay this rate to all apprentices aged 16-18 and those aged 19 or over in the first year of their Apprenticeship.

There will be transitional arrangements in England to ensure that those current apprentices who are presently protected by the current £95 per week minimum do not receive a lower wage (due to number of hours worked) from 1st October 2010.