National Minimum Wage to increase

The National Minimum Wage (NMW) increases on 1 October 2007. The new rates will be as follows:

• £3.40 per hour gross for employees aged between 16 and 17
• £4.60 per hour gross for employees aged between 18 and 21
• £5.52 per hour gross for employees aged 22 years and over

Please note that it is a criminal offence to pay below the NMW carrying a fine of up to £5,000 unless your employee lives as part of the household and is treated as a member of the family.

If your employee does live as part of the household and is not provided with separate accommodation, they are excluded from the NMW. For employers who provide separate accommodation for their employees there is an allowance of £30.10 per 7-day week, which can be offset against the NMW hourly rate.

As an employer you are required by law to give your employees regular payslips, which should show the gross wage and the tax and NI deducted to arrive at their net pay. To make sure that you are paying your employee at least the minimum wage, simply divide her gross weekly salary by the number of hours worked.