Information Item: National Minimum Wage

From the DTI employment matters site

National Minimum Wage

The DIT site describes the national minimum wage as follows: "The national minimum wage is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace.

It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay. The rates set are based on the recommendations of the independent Low Pay Commission."

The National Minimum Wage will increase from 1 October 2007

The minimum wage is a legal right which covers almost all workers above compulsory school leaving age. There are different minimum wage rates for different groups of workers as follows:

Adult rate (workers aged 22 and over) will increase to ?5.52 (from 5.35)
Development rate for 18-21 year olds will increase to ?4.60 (fro.4.45)
Development rate for 16-17 year olds will increase to ?3.40 (from ?3.30)
The rate for the accomodation offset will increase to ?30.10 per week (?4.30 per day)