NMW increases take effect

There are three levels of minimum wage, and the rates from 1 October 2008 are:

• £5.73 per hour for workers aged 22 years and older;
• A development rate of £4.77 per hour for workers aged 18-21 inclusive; and
• £3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age.

Most adult workers are entitled to the NME if they:

• are working legally in the UK;
• are not genuinely self-employed; or
• have a written, oral or implied contract 

 The development rate for workers age 22 and over was abolished for pay reference periods starting on or after 1 October 2006. From that date, all workers aged 22 and over who qualify for the national minimum wage will be entitled to the main rate of national minimum wage. This applies even where the worker was previously in receipt of the development rate for those aged 22 and over and had been receiving that rate for less than 6 months.

Compulsory School Age
In England and Wales: a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs.

In Scotland: pupils whose 16th birthday falls between 1 March and 30 September may not leave before the 31 May of that year. Pupils aged 16 on or between 1 October and the last day of February may not leave until the start of the Christmas holidays in that school year.

In Northern Ireland: a person is no longer of compulsory school age after the 30th June of the school year in which their 16th birthday occurs.

Accommodation offset
The daily rate of the accommodation offset is £4.46 (£31.22 per week) for each day that accommodation is provided.

Link

HMRC: National Minimum Wage

Article Added Wednesday, 01 October 2008

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