4. Rights to pay and conditions

The National Minimum Wage

Under the National Minimum Wage Act 1998, workers have the right to a minimum wage, currently set at £6.50 an hour for those aged 21 or over (£6.70 from 1 October 2015). Young people aged 18 to 20 get a lower hourly rate (the “development rate”) of £5.13 (£5.30 from 1 October 2015). Sixteen and 17-year-olds get a lower rate of £3.79 an hour (£3.87 from 1 October 2015).

There is also an apprenticeship rate. This rate applies to apprentices aged 16 to 18 and those aged 19 or over who are in their first year of apprenticeship. The apprenticeship rate is £2.73 an hour. This rate is to rise significantly, to £3.30, from 1 October 2015.

For an employer to be allowed to pay the “apprenticeship” rate, there must be a proper Apprenticeship Agreement in place. There is information about valid Apprenticeship Agreements in Chapter 2, page 44.

An employer providing accommodation can count some of its value towards minimum pay — currently up to £5.08 per day or £35.56 per week (£5.35 per day and £37.45 per week from 1 October 2015).

Guidance explaining the accommodation offset is available online at: www.gov.uk/national-minimum-wage-accommodation