National minimum wage

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 Government published the fourth report (1.15Mb) of the Low Pay Commission, together with a written statement to Parliament and its response to the Commission's recommendations (24Kb) on 19 March 2003.

Main (adult) rate for workers aged 22 and over

      £4.20 per hour, increasing to £4.50 per hour in October 2003

Development rate for workers aged 18-21 inclusive

      £3.60 per hour, increasing to £3.80 per hour in October 2003

NB: The development rate can also apply to workers aged 22 and above during their first 6 months in a new job with a new employer and who are receiving accredited training.

To check on how the National Minimum Wage applies to you (or your staff), use the TIGER interactive website or telephone the National Minimum Wage Helpline on 0845 6000 678. This is also the number to ring if you think you are being underpaid and wish to make a complaint. You may also email the helpline from the Inland Revenue's NMW website. All complaints about underpayment of the National Minimum Wage are treated in the strictest confidence.

You may also be interested in the following:

Consultation on the future of fair estimate agreements 

Consultation (38Kb) on proposed changes to the current system of how the National Minimum Wage applies to output workers, including homeworkers closed on 9 May 2003.

	The minimum wage and 'therapeutic work' (339Kb)
	National Minimum Wage Annual Report 2001/2002 (96Kb)
	History of the National Minimum Wage
	Further Guidance on the National Minimum Wage
	Low Pay Commission Website
	Other National Minimum Wage links
	National Minimum Wage Act and Regulations

If you have an unanswered question on general policy you can e-mail the national minimum wage policy team here at the DTI. However, queries about the application of the national minimum wage or about individual cases should be directed to the helpline.

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