The National Minimum Wage Regulations 1999 (Amendment) Regulations 2005

Explanatory Note

(This note is not part of the Order)

These Regulations amend the National Minimum Wage Regulations 1999 and come into force on 1st October 2005. They increase the principal rate of the national minimum wage from £4.85 to £5.05 per hour. They also increase to £4.25 per hour the rate to be paid to those workers (primarily aged between 18 and 21) who currently qualify for the national minimum wage at the rate of £4.10 per hour. The hourly rate for workers aged below 18 who have ceased to be of compulsory school age is unchanged by these Regulations.

In addition, the Regulations amend the per day value of accommodation amount, which amount is applicable where an employer provides a worker with accommodation. The amendment increases the amount from £3.75 to £3.90 for each day that accommodation is provided.

The Regulations also provide that workers participating in the second phase of the Leonardo da Vinci Programme, a specific European Community scheme intended to provide its participants with vocational training, do not qualify for the national minimum wage.

The Regulations contain a transitional provision and a revocation provision. The latter revokes previous provisions which increased the principal hourly rate of the national minimum wage; the rate to be paid to those who qualified for the national minimum wage at a different rate; and the daily value of accommodation amount.

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 The Employment Relations Directorate, Partnership Branch, Department of Trade and Industry, 1 Victoria Street, London SW1H OET and on the DTI website at www.dti.gov.uk.