If you employ staff, you should be aware that the national minimum wage rates change from 1st October 2012.  The updated rates are listed below:

  • £6.19 – the main rate for workers aged 21 and over
  • £4.98 – the 18-20 rate
  • £3.68 – the 16-17 rate for workers above school leaving age but under 18
  • £2.65 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

How do I know if I should pay the national minimum wage?

Most workers in the UK over school leaving age are legally entitled to be paid at least the national minimum wage and all employers have to pay it if the workers are entitled to it.  Regardless if you pay your staff weekly, monthly, by cheque, BACS or cash, they are entitled to the minimum rate.  This also applies to part-time staff or employees who work on a casual basis.

If your employee was 19 when they joined you and are now 21, they should be paid the rate for the age now, not what was agreed at the time.  If you don’t have a written contract of employment with your staff, you are still required to comply with the minimum rates.  The HR Booth can also provide you with a contract of employment template to ensure you comply with other aspects of employment law.

If you would like more information on this topic, or any other HR or employment law related matter, please contact us.