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Focus on "National Minimum Wage Act"Regulations implementing the National Minimum Wage Act 1998 came into force on 1st April 1999. The basic national minimum wage rate is currently £4.20 per hour for workers aged 22 or over, and £3.60 per hour for those aged 18-21. The lower rate also applies to certain trainee workers, while some apprentices and all those below the age of 18 are exempt from the national minimum wage. The different rates and the workers to whom they apply are as follows: * Prior to October 2002 the basic minimum wage rate was £4.10 per hour. ** Prior to October 2002 the rate for workers aged 18 to 21 was £3.50 per hour. *** The "trainee" rate of £3.60 per hour applies for a maximum of six months and only if workers are (i) starting with a new employer, (ii) receiving accredited training under an agreement with the employer, and (iii) taking part in training on at least 26 days within the first six months in the job.# Apprentices aged 18 need not be paid the national minimum wage. Those over 18 who (i) work under or are treated as working under a contract of apprenticeship, (ii) are below the age of 26, and (iii) are within the first 12 months of the start of their job are also exempt from the national minimum wage. In addition, the National Minimum Wage applies to part time and casual workers, agency workers, piecework, and commission work but not to the self-employed, voluntary workers or those living and working as part of a family (such as au pairs). The above is just a very brief outline of the regulations. The Department of Trade and Industry publish a detailed guide to the national minimum wage (ref no URN 01/1144), a short guide for employers (ref no URN 01/1145) and a short guide for employees (ref no URN 01/1146). For free copies of these guides call the national minimum wage information line on 0845 8450 360. For other enquiries about the national minimum wage, call the helpline on 0845 6000 678. Information is also available via the internet at www.dti.gov.uk/er/nmw |