What is the minimum wage?

In the UK, the National Minimum Wage basically exists to protect you from being underpaid in hourly-paid jobs. Monitored by the Low Pay Commission, it aims to close the gap in regional pay differences and keep salaries in line with other European countries.

The National Minimum Wage does have its critics. Some businesses in the private sector believe it puts an unfair squeeze on them, and would like to see the increase met by other sources such as government subsidies or tax breaks. But for the average punter it's good news. Not only does it give you a guaranteed minimum pay bracket, it's also reviewed every year to ensure the rates are fair.

How much should I be getting paid?

From 1st October 2011, the National Minimum Wage is:

• For those aged 21 or over is £6.08 per hour
• For those aged 18 to 20 the rate is £4.98
• For those aged 16-17 the rate is £3.68 per hour
• Apprentices under 19, or over 19 and in the first year of their apprenticeship, are now entitled to a minimum wage of £2.60 an hour.
  

From October 2012, the minimum wage for over 21s will rise to £6.19 an hour. Unfortunately the government is freezing minimum wage for people under 21 and therefore the above rates will remain the same.

I'm being paid less than the minimum wage! What can I do?

HM Revenue and Customs (HMRC) is responsible for ensuring employers pay their workers properly. If you think you're being ripped off the first move should be a visit to the complaints page of the HMRC website. In order to launch complaint proceedings, HMRC will ask you to give details to an investigator, so make sure you're prepared to do this.

If you wish to take your case to an employment tribunal you need to act fast, as you only have three months from the last time you were paid below the minimum wage. First, you need to make a complaint to your employer. If you do this within three months the timescale for the tribunal will be extended to six months.

For more advice on getting paid what you deserve, read the advice on The Citizen's Advice Bureau (CAB) website.

I've been told I'm not eligible for the minimum wage - why?

There are some workers who are not eligible for the minimum wage. These are:

• Self-employed people
• Company directors
• Apprentices under the age of 19
• Apprentices on certain government schemes at pre-apprenticeship level
• Some government employment programmes designed to provide training or work experience
• European Community Leonardo Da Vinci programme or Youth in Action Programme participants
• People doing work experience if it lasts less than a year
• If you're a member of the employer's family, live at home and help with family chores
• People living in their employer's household - e.g. nannies and au pairs
• People who do odd jobs for friends or neighbours
• Members of the armed forces
• Share fishermen
• Prisoners or detained immigrants working in a removal centre
• Volunteers and voluntary workers
• People living in religious or other types of community

Did you know?

• The National Minimum Wage was introduced in the UK in 1999 - unfortunately, that doesn't mean all employers play by the rules.
• According to the Office of National Statistics (ONS), in 2008 there were 288,000 jobs in the UK which paid less than the NMW.
• People in part-time work are twice as likely to earn less than the NMW.
• Of this group, women were more likely to be in jobs that pay less than the NMW, because more women work part-time.
• The good news is that changes brought in by the Employment Act 2008 mean that from April 2009, employers face a penalty if HMRC discover they have failed to pay workers the minimum wage. Workers will be entitled to have backdated wages repaid at current rates. The Act also gives HMRC officers new inspection powers.

By Emma Rubach

Updated: 19/03/2012