NATIONAL MINIMUM WAGE (NMW)

The NMW is due to be changed on the 1 October 2011.

Most workers in the UK over school leaving age are entitled to be paid the NMW.  The NMW does vary, and depends upon the age brackets you apply to.

Some people are not entitled to the NMW as follows:-

 

Self-employed

If you are self-employed you are not entitled to receive the National Minimum Wage. If you believe you are a worker but your ‘employer’ says you are self-employed, they are responsible for proving you are self-employed if a National Minimum Wage dispute goes to an Employment Tribunal or civil court.

 

Work experience

If you are a student doing work experience as part of a higher or further education course you are not entitled to the National Minimum Wage if the work experience doesn’t last longer than a year.

 

Company directors

If you are a company director you are an ‘office holder’ in law. You are not entitled to receive the National Minimum Wage for the work you do as an office holder. If you also have an employment contract or worker’s contract you will be entitled to the National Minimum Wage for the work you do under that contract. 

 

The NMW rates from the 1 October 2011 are: -

 

·         Adult rate  - £6.08 per hour

·         Rate for 18-20 year olds - £4.98 per hour

·         Rate for 16-17 year olds - £3.68 per hour

·         Rate for apprentices - £2.60 per hour

 

Apprentices aged 19 or over who have completed one year of their apprenticeship are entitled to receive the full NMW applicable to their age.

There is much to HMRC’s legislation and it is advisable you seek the advice of a qualified appropriate accountant. 

Please contact :   Dawn Johnson FMAAT (see advert below)

 

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