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These Regulations amend the National Minimum Wage Regulations 1999 (the “Principal Regulations”) and come into force on 1st October 2009.
Regulation 2 increases the principal rate of the national minimum wage from £5.73 to £5.80 per hour (regulation 11 of the Principal Regulations). The Regulations also increase the rate paid to workers aged between 18 and 21 from £4.77 to £4.83 per hour (regulation 4(a)) and the rate to be paid to workers aged below 18 who have ceased to be of compulsory school age from £3.53 to £3.57 per hour (regulation 4(b)).
Regulation 3 inserts two new classes of persons who do not qualify for the national minimum wage. These are workers participating in the European Community Erasmus and Comenius Programmes, part of the European Union action programme in the field of lifelong learning.
Regulation 5 amends regulation 31(e) of the Principal Regulations so that service charges, tips, gratuities and cover charges paid to a worker through the employer’s payroll do not count towards national minimum wage.
Regulation 6 amends the per day value of the accommodation amount which is applicable where an employer provides a worker with living accommodation. The amendment increases the amount from £4.46 to £4.51 for each day that accommodation is provided (regulation 36(1) of the Principal Regulations).
The Regulations contain a transitional provision. This provides that regulations 3 and 5 do not apply in relation to any pay reference period beginning before 1st October 2009.
The Regulations contain a revocation provision. This 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 the accommodation amount.
A Regulatory Impact Assessment of the effect that this instrument will have on the costs of business and the voluntary sector is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website.
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