4. RIGHTS TO PAY AND CONDITIONS

The National Minimum Wage

Under the National Minimum Wage Act 1998, UK workers have the right to a minimum wage, currently set at £6.31 an hour for those aged 21 or over (£6.50 from 1 October 2014). Young people aged 18 to 20 get a lower hourly rate (the “development rate”) of £5.03 (£5.13 from 1 October 2014). Sixteen and 17-year-olds have a lower rate of £3.72 an hour (£3.79 from 1 October 2014), and apprentices under the age of 19 or in the first year of their apprenticeship must be paid at least £2.68 an hour (£2.73 from 1 October 2014).

For an employer to be allowed to pay the lower “apprenticeship” rate, there must be a genuine Apprenticeship Agreement in place. Apprenticeships are now regulated by a statutory framework. For more information see Chapter 2: Categories of worker — Apprenticeships.

An employer providing accommodation can count some of its value towards minimum pay — currently up to £4.91 per day or £34.37 per week (£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.