National Minimum Wage

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The increase in the national minimum wage rates are confirmed in The National Minimum Wage Regulations 1999 (Amendment) (No. 2) Regulations 2004. These regulations have been approved by Parliament and apply to any pay reference period that starts on or after 1 October 2004. The amendments that are made to The National Minimum Wage Regulations 1999 are as follows:

  • The national minimum wage hourly rate is

    • £;4.10 for workers aged 18 to 22 inclusive

    • £;4.10 for workers who are aged 22 or older, are within their first six months of employment with a new employer, and are required under their contracts to take part in accredited training on at least 26 days in that six month period

    • £;3.00 for workers who are above the compulsory school leaving age and under age 18

    • £;4.85 in all other cases.

  • The definition of workers who are to be treated as working under a contract of apprenticeship is changed for England and Wales to

    • in England, the Government arrangements known as Apprenticeships or Advanced Apprenticeships,

    • in Wales, the Government arrangements known as Modern Apprenticeships or Foundation Modern Apprenticeships.

  • The following workers do not qualify for the national minimum wage in respect of any work done under the following Government schemes:

    • in England, Entry to Employment

    • in Scotland, Get Ready for Work

    • in Northern Ireland, Access

    • in Wales, Skillbuild.

  • The amount that may be offset in a pay reference period for the provision of accommodation is £;3.75 per day.

  • The requirement for the employer to keep a copy of an agreement in respect of output work has been removed. The original "fair estimate" agreements are replaced from 1 October 2004 by the requirement to pay "fair piece rates". As a result, the employer must now keep a copy of the statutory notice given to each worker and a copy of such data as is necessary to show how the fair piece rates have been determined.

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...back to 30 July 2004

Sources:
www.hmso.gov.uk/si/si2004/20041930.htm


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