What is the National Minimum Wage (NMW)?
It is legislation that was introduced in April 1999, to ensure that certain age groups of people earn at least a specified minimum amount of money per hour. The Low Pay Commission makes recommendations to the government which, if accepted, and they usually are, are passed into law and enforced by the Inland Revenue.
Who are exempt?
Whatever the size of your business or no matter how few employees you may have, there are no businesses that are exempt from paying at least the NMW.
Are there any employees that need not be paid the NMW
The following groups have been excluded:
- Under 16 year olds
- Apprentices over 15 years and under 19 years old
- Apprentices over 17 years and under 26 years old (first 12 months of employment)
- Participating members of a family business who live at home
- Workers who live and work as part of the family who pays them. (Limited company rules differ)
- People who are thought of as employees (but in law are not)
- Volunteers
- Self employed workers (as defined by the Inland Revenue)
What are the NMW pay rates?
