Revised National Minimum Wage Regulations

Revised National Minimum Wage (NMW) Regulations that will set new levels of the NMW from 1 October 2004 and introduce from the same date a NMW for 16 and 17 year olds have recently been approved by the House of Commons.

1. On 15 July 2004 , the draft National Minimum Wage Regulations 1999 (Amendment) (No 2) Regulations 2004 were approved by the Ninth Standing Committee on Delegated Legislation of the House of Commons. These Regulations implement the changes to the NMW that was set out on 16 March 2004 .

2. Through these Regulations which will come into effect on 1 October 2004, the National Minimum Wage (NMW) for adult workers will be increased to £4.85 per hour and the youth/development rate will be increased to £4.10 per hour. In addition, these Regulations will introduce a new NMW of £3.00 per hour from 1 October 2004 which will apply to all workers who are under 18 years of age and over school leaving age.

3. Opening the debate on these draft Regulations, Gerry Sutcliffe MP, the Parliamentary Under-Secretary of State for Trade and Industry, said that the new rate of £3 per hour will apply “only to people under 18 who have ceased to be of compulsory school age”. He also confirmed that apprentices who are aged under 18 will not be entitled to this new NMW of £3 per hour and that this exemption will also apply to people under 18 “who are on schemes at a pre-apprenticeship level”.