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(This note is not part of the Regulations)
These Regulations, which amend the National Minimum Wage Regulations 1999 (“the principal regulations”) and come into force on 1st October 2003, increase the minimum hourly rate of the national minimum wage from £4.20 to £4.50. They also increase the rate to be paid to those (including workers aged between 18 and 21) who qualify for the national minimum wage at a different rate, from £3.60 to £3.80.
In addition, the Regulations amend the principal regulations by altering the provisions relating to the valuation of accommodation in situations where a worker is provided with accommodation by the employer. The effect of this alteration is to provide (when valuing accommodation to determine whether the national minimum wage has been paid) that accommodation will carry a fixed amount per day value. This fixed daily amount is £3.50. The previous additional valuation method based on the number of hours worked will no longer be applicable.
The Regulations further amend the principal regulations by inserting a new regulation 36A. This provides that, in connection with the valuation of accommodation, any amounts to be calculated in respect of any pay reference period (which is defined in regulation 10 of the principal regulations) shall be calculated in accordance with the principal regulations in force on the first day of the pay reference period.
The Regulations contain transitional provisions which have the effect that the revised valuation of accommodation regulations only apply in relation to pay reference periods beginning on or after 1st October 2003.
The Regulations contain a revocation provision. This, firstly, revokes previous provisions relating to the valuation of accommodation and, secondly, revokes previous provisions which increased the minimum hourly rate of the national minimum wage and the rate paid to those who qualified for the national minimum wage at a different rate.
A Regulatory Impact Assessment of the estimated costs and benefits of the rate increases has been placed in the Libraries of both Houses of Parliament. Copies are available to the public from Employment Relations, P&S, Department of Trade and Industry, 1 Victoria Street, London SW1H OET and on the DTI website at www.dti.gov.uk.
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