National minimum wage rises to £4.85

The minimum hourly rate of the national minimum wage rises from £4.50 to £4.85, while16- and 17-year-olds are protected with a minimum rate of £3.00 for the first time, from 1 October 2004.

The rate for 18 to 21 year olds increases from £3.80 to £4.10 per hour.

The National Minimum Wage Regulations 1999 (Amendment) Regulations 2004 also come into force on 1 October 2004.

The Regulations provide that, from 1 October 2004, output workers must be paid the minimum wage for all hours worked or 100% of the minimum wage for the number of hours it takes an average worker to complete an agreed block of work. From April 2005 the latter will rise to 120% of the national minimum wage for a block of work to ensure that it is not just the faster workers who receive the minimum wage.

  • National minimum wage   Visit HR & Compliance Centre's statutory rates service for full details of the new rates from 1 October 2004.

    Also

    Minimum wage increases by 7.8%   IRS Employment Review reports.

    New piecework Regulations published   A new system for applying the national minimum wage to pieceworkers comes into force on 1 October 2004.

    Low Pay Commission consults on minimum wage   The Low Pay Commission is seeking views on the current state of the national minimum wage, in preparation for a report to be delivered to the Government in February 2005.

    The national minimum wage   Visit the HR & Compliance Centre reference manual for further information on workers' rights to be paid the national minimum wage.