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Employment Solicitors
National Minimum Wage (29 October 2010)
Date: 29/10/2010
By Krishnakanth A V Balasubramani
The National Minimum Wage Act 1998 was enacted to secure a minimum hourly rate of pay for employees. Employers are under an obligation to pay the specified national minimum wage.
There are different rates of National Minimum Wage for three different categories of worker:
Standard Rate:
Workers aged 21 or over (Before it was 22).
Development Rate:
Workers aged between 18 – 20
Young Workers Rate:
Workers aged below 18 but above compulsory school age.
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.
The government makes changes in the National Minimum Wage every year which comes into effect from 1 October of every year
The latest change of National Minimum Wage has come into effect from 1st October 2010 for different categories of workers:
The National Minimum Wage for different categories of workers from 1st October 2010 as follows:
| Category of Worker | Hourly Rate from 1 October 2010 |
Aged 21 and above | £5.93 |
Aged 18 to 21 inclusive | £4.92 |
Aged under 18 | £3.64 |
Apprentices aged under 19 | £2.50 |
Apprentices aged 19 and over, but in their first year of their apprenticeship | £2.50 |
Changes made from October 2010:
The government has raised the National Minimum Wage around two percent in each category when compared to the last year’s NMW. The another important change the government brought by extending the adult national minimum wage to 21 year olds from October 2010, previously it was 22 year olds.
The government has accepted the recommendation made by Low Pay Commission and has introduced NMW a new category called Apprentices. The NMW for apprentice will be £2.50 per hour.
| Category of Worker | NMW from 1st October 2010 | NMW from 1st October 2009 | NMW from 1st October 2008 | NMW from 1st October 2007 | NMW from 1st October 2006 |
Aged 22 and above(The age limit has been changed to 21 from 2010) | £5.93 | £5.80 | £5.73 | £5.52 | £5.35 |
Development rate ( Workers aged between 18 – 21 ) | £4.92 | £4.83 | £4.77 | £4.60 | £4.45 |
Young workers rate( workers between 16 – 18 ) | £3.64 | £3.57 | £3.53 | £3.40 | £3.30 |
Apprentices aged under 19 | £2.50 | - | - | - | - |