New Guidance – national minimum wage- 2011

Minimum Wage

Guidance providing greater clarity for businesses who offer work experience, placements and internships has been published today, as announced in the Social Mobility Strategy in April.

The updated guidance from Business Link and DirectGov includes advice on the payment of the National Minimum Wage (NMW) for work experience staff and interns, and clarifies when someone is entitled to this payment. The guidance also includes a new worker checklist for employers and examples of case studies, which aims to make sure that those who are entitled to the NMW receive it.

Entitlement to the NMW does not depend on a job title but on whether the arrangement they have with an organisation makes them a worker for NMW purposes. Where an individual is a worker – and no exemption applies – then they must be paid at least the NMW

The full version of the guidance can be found here – www.businesslink.gov.uk/nmw

Anyone who feels they have had their National Minimum Wage rights abused is encouraged to contact the Pay and Work Rights helpline on 0800 917 2368 for free and confidential advice.

From 1st october 2011, new National Minimum Wage (NMW) rates will come into force. The NMW applies to nearly all workers in England, Scotland & Wales and sets hourly rates below which you must not allow pay to fall.

For pay reference periods beginning on or after 1st October 2011, you will have to pay all eligible workers the following:

• £6.08 an hour to Adult workers aged 21 and above
• £4.98 an hour to workers aged 18-20
• £3.68 an hour to workers aged 16-17
• £2.60 an hour to Apprentices

The daily accomodation offset.

You will be able to offset from the NMW an amount of £4.73 per day for each day that you provide a worker with living accomodation.

For professional & impartial Business advice contact Janette Whitney at Award Winning Business Consultants, Janette Whitney & Associates on 01403 733671 or email jw@whitneyassocs.co.uk