THE NATIONAL MINIMUM WAGE  

The national minimum wage is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace. It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay. The rates set are based on the recommendations of the independent Low Pay Commission.

The National Minimum Wage has increased again in October 2006

The minimum wage is a legal right which covers almost all workers above compulsory school leaving age. There are different minimum wage rates for different groups of workers as follows:

• The main rate for workers aged 22 and over. On 1 October 2005 this rate was raised to £5.35 an hour, from £5.05
   
• The accredited training rate for workers aged 22 and over who are receiving accredited training in the first six months of a job with a new employer. On 1 October 2005 this rate of the minimum wage was raised to £4.45 an hour, from £4.25.