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National Minimum Wage - New rates apply from October 2005
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The increases to the national minimum wages rates apply from 1 October 2005, as follows:
| Workers above compulsory school leaving age (see below) and under age 18
| £;3.00
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| Workers aged 18 to 22 inclusive
| £;4.25
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| Workers aged 22 or older, within their first six months of employment with a new employer, and required under their contracts to take part in accredited training on at least 26 days in that six month period
| £;4.25
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| All other workers
| £;5.05
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| Accommodation Offset (rate per day)
| £;3.90
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The accommodation offset is the maximum amount that may be allowed for the provision of living accommodation.
Example: A 25-year old employee is paid £;202 for a week (i.e. 40 hours @ £;5.05 per hour), but £;50 is deducted for the provision of accommodation for 7 days. This breaches the NMW rules. The maximum offset for 7 days is £;27.30 (i.e. 7 × £;3.90). The employee must receive at least £;174.70 (i.e. £;202 - £;27.30) to comply.
The school leaving age differs in England and Wales, Scotland and Northern Ireland. The following Table summarises the current situation.
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| 16th birthday on or between:
| School leaving date:
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| England and Wales
| first day of the school year and the last Friday in June in the following year
| last Friday in June in that following year
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| day after the last Friday in June and the day before the first day of the new school year
| last Friday in June in that year
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| Scotland
| 1 March and 30 September
| 31 May of same year
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| 1 October and end February
| Start of Christmas holidays
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| Northern Ireland
| 1 September and 1 July in the following year
| 30 June in that following year
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| 2 July and 31 August in any year
| 30 June in the following year
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The new NMW rates always take effect from the start of the first pay reference period starting on or after 1 October.
Examples - 1 October 2005 is a Saturday.
- Employees are paid for work performed between Saturday and Friday on that Friday. The first pay reference period on or after 1 October starts on Saturday, 1 October. The wages paid on 7 October must meet the NMW.
- Employees are paid for work performed between Sunday and Saturday on the following Friday. The first pay reference period on or after 1 October starts on Sunday, 2 October. The wages paid on 14 October must meet the NMW.
- Employees are paid on the 25th of each month for work performed in that calendar month. The first pay reference period on or after 1 October starts on Saturday, 1 October. The wages paid on 25 October must meet the NMW.
...back to 6 October 2005
Sources:
National Minimum Wage: An Introduction
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