National Minimum Wage

Mar 16, 2020 Hints tips
National Minimum Wage

With the National Minimum & Living Wage increasing annually each April, the team at Simple Recruitment have been doing our research, we’d love to share with you some of the tips we have picked up along the way.

 

What is the National Minimum Wage?

The National Minimum Wage (NMW) and National Living Wage are the minimum pay per hour workers in the UK are entitled to by law.

The rate varies depending on your age and whether you’re an apprentice.

 

Are you entitled to the National Minimum Wage?

You must be at least school leaving age (the last Friday in June of the school year in which you turn 16) to get the National Minimum Wage.

 

Almost all workers are entitled to the National Minimum Wage, including:

  • Casual workers
  • Part-time workers
  • Temporary workers

 

You are not entitled to National Minimum wage if you are self-employed or a company director.

 

The National Minimum Wage is worked out as an hourly rate, but it applies even if you are not paid by the hour.

Age New Rates as of 1st April 2020 (£PH)
25+ 8.72
21-24 8.20
18-20 6.45
Under 18 4.55
Apprentice 4.15

 

How does NMW affect annual salary?

A worker is doing ‘salaried hours’ work if they’re paid:

  • A set basic number of hours each year under your contract
  • An annual salary in equal weekly or monthly amounts
  • Salaried hours workers’ contracts might not state the basic number of hours as an annual figure, but it must be possible to work this out. Workers and employers can then use this figure to make sure the rate of pay is at least the minimum wage.

 

How to work out your hourly rate:

  • Find the basic annual hours in your contract.
  • Divide this by the amount of times you get paid each year (for example 12 if you get paid monthly) – this gives you the average number of hours covered by each pay packet.
  • Divide the amount you get in each pay packet by this number (average hours). This gives you your hourly rate.

 

What counts as working time?

For all types of work, include time spent:

  • At work and required to be working, or on standby near the workplace (but do not include rest breaks that are taken)
  • Not working because of machine breakdown, but kept at the workplace
  • Waiting to collect goods, meet someone for work or start a job
  • Travelling in connection with work, including travelling from one work assignment to another
  • Training or travelling to training
  • At work and under certain work-related responsibilities even when workers are allowed to sleep (whether or not a place to sleep is provided)

 

Do not include time spent:

  • Travelling between home and work
  • Away from work on rest breaks, holidays, sick leave or maternity leave
  • On industrial action

 

 

Any further information can be found on the gov.uk website or moneyadviceservice.org.uk

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