National minimum wage

Article Index
Overview

Increases to hourly rates:
- Adult rate (aged 21 and over) - £6.19
- Youth rates: 18-20-year-olds - no change for 2012-13, frozen at £4.98; 16-17-year-olds - no change for 2012-13, frozen at £3.68
- Apprentices - £2.65
The apprentice rate applies to apprentices under 19 or those who are 19 and over but in the first year of their apprenticeship. The apprentice NMW must be paid for hours spent working plus the time spent training both on and off the job (e.g. time at college). In-kind benefits such as meals, tips and childcare vouchers do not count towards the apprentice NMW.
Guidance has been published on whether employers must pay the NMW to interns and those on work placements/experience.

The per day value of the accommodation amount, which applies where an employer provides a worker with living accommodation, will increase from £4.73 to £4.82 for each day that the accommodation is provided.
Tax-free expenses paid to a worker to cover their travel from home to a temporary workplace do not count towards NMW pay. Such expenses cover travel costs and associated subsistence and accommodation costs. A consultation uncovered abuse of these schemes by employers who have used these arrangements to avoid liability to pay National Insurance contributions.

Equality Act reforms