Changes to the National Minimum Wage: What all Employers need to know From today, the amount that you are required to pay your employees may increase. All employers are under a legal obligation to pay a minimum hourly rate of pay to their workers. This is called the National Minimum ("NMW”). Workers include employees and casual workers. You cannot avoid paying the NMW by making an agreement with your employees. If you fail to pay the NMW you could be liable for criminal and civil prosecutions and financial penalties. There are three different rates of the NMW. The rate depends upon the age of the worker. From 1 October 2010, the Standard Rate will apply to all workers aged 21 and over and not just those aged 22 and over, as previously. In addition, there will be a new rate for apprentices under the age of 19 or those aged 19 and over but in the first year of their apprenticeship. With effect from 1 October 2010 the rates of the NMW will be as follows:- Minimum Hourly Rate | From 1 October 2010 | - Standard (adult) Rate
Workers aged 21 and over | £5.93 | - Development Rate
Workers aged 18-20 | £4.92 | - Young Workers Rate
Workers aged under 18 but above compulsory school age who are not apprentices | £3.64 | - Apprentices
Apprentices under 19 years of age or those aged 19 and over but in the first year of their apprenticeship | £2.50 |
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