National Minimum Wage

The National Minimum Wage was brought in by the government in 1999. Before then employers could pay staff what they wanted and some workers received very low salaries.

Hourly rates of pay under the National Minimum wage (NMW)

  • £5.93 (£6.08) for workers aged 21 years and older
  • £4.92 (£4.98) for workers aged 18-20
  • £3.64 (£3.68) for all workers under the age of 18, who are no longer under the compulsory school age

(New rates from October 2011 are shown in brackets).

How this adds up...

A 17 year old working 40 hours a week would receive a weekly wage of £145.60, or £7571 per year.

You will need to pay tax and national insurance contributions on whatever you earn, regardless of the National Minimum Wage or a higher salary.

Exceptions to the National Minimum Wage

Not everyone is entitled to receive the National Minimum Wage. Exceptions include:

  • People on work experience
  • The self-employed
  • Most apprentices - although you will receive the National Minimum wage for apprentices.

Work sectors more likely to pay just the National Minimum Wage

Certain work sectors (such as hospitality and the retail industry) are more likely to pay just the National Minimum Wage (at least, until you are more experienced). Jobs include:

  • Junior hairdresser
  • Childcare assistant
  • Sales assistant
  • Waiting staff (e.g. in restaurants, cafes and hotels)
  • Cleaners

What next?

Look at the Citizen's Advice Bureau or Work Smart. These have the latest amounts for the National Minimum Wage plus a useful 'wage calculator'.