Labour Research November 2009

Law Matters

Minimum wage rises and tips do not count

The National Minimum Wage (NMW) increased on 1 October. The main rate for 22-year olds and above increased to £5.80 an hour, while for 18- to 21-year olds it is now £4.83 and the rate for 16- to 17-year olds rose to £3.57.

The accommodation offset, where an employer can deduct the cost of accommodation provided, is now £4.51 a day (£31.57 a week).

Amounts paid by the employer to the worker which represent tips, gratuities or service charges paid by customers do not now count towards the NMW.

A free government Pay and Work Rights helpline can give advice on the NMW — call 0800 917 2368