National Minimum Wage

The National Minimum Wage 

The National Minimum Wage (NMW) was introduced on 1 April 1999. There have already been a number of instances of employers being penalised for not complying with the legislation. The Revenue is the agency that ensures enforcement of the NMW.
 
We highlight below the main principles of the minimum wage regulations.
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The main rate of the NMW is £6.31 per hour from 1 October 2013.
The development rate for employees between 18 and 21 years old is £5.03 per hour from 1 October 2013.
16 and 17 year olds must be paid a development rate which is £3.72per hour from 1 October 2013
The apprentice rate is £2.68 from October 2013
 
The Employment Equality (Age) Regulations provide a specific lawful exemption enabling young workers to continue to be paid below the standard adult NMW and allowing the different rates to be used according to the above age bands.
 
This was in response to employers’ concerns about financial pressures if the maximum rate was applied to all employees.
 
In addition there is a fair piece rate which means that employers must now pay their output workers the minimum wage for every hour they work based on an hourly rate derived from the time it takes a worker working at average speed to produce the work in question. The entitlement of workers paid under this system is uprated by 20%. This means that the number reached after dividing the NMW by the average hourly output rate must be multiplied by 1.2 in order to calculate the fair piece rate
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There are no exemptions from paying the NMW on the grounds of the size of the business.
 
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