The National Minimum Wage (NMW) is the minimum wage per hour that most workers are entitled to be paid in the United Kingdom. The NMW is set by the government and is reviewed and updated annually. The current NMW rates, as of 2021, are as follows:
- £8.91 for workers aged 23 and over
- £8.36 for workers aged 21 to 22
- £6.56 for workers aged 18 to 20
- £4.62 for workers aged 16 to 17
- £4.30 for apprentices under 19 or in the first year of their apprenticeship
The NMW applies to most workers in the UK, including part-time, temporary, and casual workers. Some workers, such as self-employed individuals and company directors, are not entitled to the NMW. It is the responsibility of employers to pay their workers at least the NMW, and failure to do so can result in financial penalties.
The NMW is designed to protect low-paid workers and ensure that they receive a fair wage for their work. It is an important part of the government's efforts to reduce poverty and promote economic fairness. The NMW also helps to create a level playing field for businesses, as it prevents companies from undercutting their competitors by paying workers less than the minimum wage.
In addition to the NMW, workers may also be entitled to other forms of pay, such as overtime pay and holiday pay. Overtime pay is a premium rate of pay that is paid to workers for working extra hours, while holiday pay is pay that is given to workers for taking time off work.
The NMW is administered by the Department for Business, Energy and Industrial Strategy (BEIS) through its agency, the Low Pay Commission (LPC). The LPC is responsible for reviewing and recommending changes to the NMW to the government, based on factors such as inflation, the cost of living, and the state of the economy.
In conclusion, the NMW is an important policy that helps to ensure that workers in the UK are paid a fair wage for their work. It is set by the government and reviewed annually to ensure that it reflects changes in the economy and the cost of living. The NMW applies to most workers in the UK, and it is the responsibility of employers to pay their workers at least the NMW.
