National Minimum Wage rates
[ch 10: page 76]Here are the current NMW hourly rates (2013-14). They are revised each October:
• £6.31 for workers aged 21 or over, known as the “adult rate” (£6.50 from 1 October 2014);
• £5.03 for young people aged 18 to 20 (known as the “development rate” (£5.13 from 1 October 2014);
• £3.72 for 16-17 year olds (£3.79 from 1 October 2014);
• £2.68 for apprentices under 19 or in the first year of apprenticeship (£2.73 from 1 October 2014).
The apprenticeship rate can only be paid where there is a genuine apprenticeship agreement in place, meeting the requirements of the Apprenticeship, Skills, Children and Learning Act 2009. For more information, see the Apprenticeships.org website at: www.apprenticeships.org.uk.
Accommodation offset rate
An employer who provides accommodation can count some of its value towards the NMW. This is limited to a maximum of £4.91 per day or £34.37 per week. This will increase to £5.08 per day and £35.56 per week from 1 October 2014.
Guidance explaining the accommodation offset is available online at: www.gov.uk/national-minimum-wage-accommodation.
The accommodation-offset rule applies to accommodation only. It is against the law to offset other costs against the NMW such as transport, meals or uniforms. Information about calculating the NMW is available at: www.gov.uk/browse/working/tax-minimum-wage.