NATIONAL MINIMUM WAGE
Changes to minimum wage
Up to two million workers stand to gain from a pay rise from Friday 1 October as new rates for the national minimum wage come into force.
Rule changes mean added protection for people who work from home and a new rate for young people over 16. What's more, 100,000 homeworkers will be better off under new rules linking their pay rates to the national minimum wage. And for the first time 16 and 17 year olds who are no longer of compulsory school age will be paid at least £3.00 per hour.
| New hourly rates effective from 1 October 2004 | |
| Main (adult) rate for workers aged 22 and over | £4.85 |
| Development rate for workers aged 18-21 inclusive | £4.10 |
| New rate for 16 and 17 year olds The Government has accepted the Low Pay Commission's recommendations for a new rate for 16 and 17 year olds (above compulsory school leaving age). 16 and 17 year old apprentices will be exempt from the new young workers rate. | £3.00 |
New rules for homeworkers
Patricia Hewitt, secretary of state for trade and industry, said: "The change to the homeworking rules will protect people who work in an industry that has a history of exploitative rates of pay, especially minority ethnic and women workers."
From 1 October 2004, employers of homeworkers must also:
pay all homeworkers the minimum wage for all hours worked or pay 100% of the national minimum wage for the number of hours it takes an average worker to complete an agreed block of work -- a "fair piece rate"
give employees clearer information about the way their pay rates have been set
stop the practice of setting a rate of pay at four-fifths of the time it takes an average worker to complete a set piece of work.
In April 2005, homeworkers will see a further improvement in their wages when employers will have to pay the average worker at a rate of 120% of the minimum wage for a block of work.