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What do you need to know?
National Minimum Wage changes
On 1st October 2007 a futher increase in the National Minimum Wage (NMW) was implemented.
- Employees aged 22 and above increase from £5.35 per hour to £5.52 per hour
- Employees aged between 18 and 21 increase from £4.45 per hour to £4.60 per hour
- Employees aged 16 to 17 increase from £3.30 per hour to £3.40 per hour
- 16 and 17 year old apprentices are exempt from the young workers rate of £3.40
The minimum wage is calculated using employees' gross pay. The following pay elements should be used in the calculation:
- Bonus and commission payments for that pay period
- Tips, gratuities and service charges which are paid through the payroll
- Payments recieved as part of an incentive
- Piecework
You cannot however use overtime payments in the calculation
The regulations also contain further ammendments with new exemptions, these are:
- Those participating in the Programme Led Apprenticeship scheme (England only). These courses are for young people who wish to follow an apprenticeship but for whom a permanent employed place is not available.
- Workers participating in the Youth in Action programme.
- Workers who attend a period of work experience as part of a course of further education.
- Workers participating in the Leonardo da Vinci programme, a European Union scheme intended to provide vocational training.
- The regulations clarify the exemption for workers who are undertaking a period of work performance of not moore than one year where they are also undertaking a futher or higher education course.
Minimum Statutory Leave per Annum
- Up to the 30th September 2007 - the existing 4 weeks statutory leave (20 days for full-time workers) will continue.
- From 1st October 2007 = the minimum annual leave will be increased to 4.8 weeks (24 days for full-time workers).
- From 1st April 2009 = the minimum annual leave will be increased to 5.6 weeks (28 days for full-time workers).
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