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National minimum wage - who must pay it and how it's calculated

Any changes to the national minimum wage (NMW) rates generally take place in October. The current rates are set out below:

Current NMW rates

For pay reference periods starting on or after Main hourly rate for workers aged 22 and over Hourly rate for workers aged 18-21 Hourly rate for workers aged 16-17
1 Oct 2009 £5.80 £4.83 £3.57

See a table of NMW rates 1999-2008 - Opens in a new window.

When and how the rates apply

It makes no difference when a worker is paid (monthly, weekly, daily, hourly, by session). The NMW still applies.

Employers and workers need to know when the different rates apply. For example, at age 21 a worker is entitled to the 18 to 21-year-old rate. From the first 'pay reference period' (PRP), starting on or after their 22nd birthday, they become entitled to the main rate. The rate applicable in a PRP is the rate payable on the first day of the period. Since the rates are age related, you may need to ask workers to provide proof of their age.

For more on PRPs, see the page in this guide: what is the pay reference period?

Subjects covered in this guide

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National minimum wage law

 

National minimum wage - who must pay it and how it's calculated

 

 

Introduction

 

Who is the employer for the purposes of paying the national minimum wage?

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The national minimum wage rate

 

What is the pay reference period?

 

The pay reference period - bonuses and timesheets

 

Tables and examples on the national minimum wage and who is entitled to it