New National Minimum Wages Rates From 1st October
From 1 October 2010, new national minimum wage (NMW) rates will come into force.
The NMW applies to nearly all workers and sets hourly rates below which you must not allow pay to fall.
For pay reference periods (PRPs) beginning on or after 1 October 2010, you will have to pay all eligible workers the following:
· £5.93 an hour to workers aged 21 and above ('the main rate')
· £4.92 an hour to workers aged 18-20
· £3.64 an hour to workers aged below 18 who are no longer of compulsory school age
It's important to note that the age threshold for the main rate is going to fall from 22 (as it is currently) to 21.
New entitlement to the NMW for apprentices
For PRPs beginning on or after 1 October 2010, you will have to pay at least £2.50 an hour to apprentices who are:
· under the age of 19
· aged 19 or over and in the first year of their apprenticeship
Currently such apprentices are not entitled to the NMW.
To qualify to receive the NMW, the apprentice must either:
· work under a contract of apprenticeship
· be employed on a government-funded training scheme that is treated as an apprenticeship for NMW purposes - in Northern Ireland, ApprenticeshipsNI and Modern Apprenticeships
The daily accommodation offset
You will be able to offset from the NMW an amount of £4.61 per day for each day that you provide a worker with living accommodation.