The National Minimum Wage Regulations 1999 (Amendment) Regulations 2010

EXPLANATORY NOTE

(This note is not part of the Order)

These Regulations amend the National Minimum Wage Regulations 1999 (the “Principal Regulations”) and come into force on 1st October 2010.

Regulation 3 increases the principal rate of the national minimum wage from £5.80 to £5.93 per hour (regulation 11 of the Principal Regulations) and regulation 5 decreases the age at which this rate becomes payable from 22 to 21. The Regulations also increase the rate paid to workers aged between 18 and 20 from £4.83 to £4.92 per hour and the rate to be paid to workers aged below 18 who have ceased to be of compulsory school age from £3.57 to £3.64 per hour.

Regulation 5 provides for a national minimum wage at the rate of £2.50 per hour for apprentices who are employed under a contract of apprenticeship or who are engaged under Government arrangements in England, Scotland, Northern Ireland and Wales, as specified in regulation 13(6)(b) of the Principal Regulations. This hourly rate applies to apprentices who are within the first 12 months of that employment or engagement or who have not attained the age of 19. It applies not just to apprentices who are workers within the meaning of section 54(3) of the National Minimum Wage Act 1998 but also where they are to be regarded as workers by virtue of the additions to that definition contained in regulation 2(1) of the Principal Regulations. The additions relate to agency workers and home workers who are outside the definition of “worker” in section 54(3). Regulation 4 removes these apprentices from regulation 12 of the Principal Regulations, and updates the names of the Government arrangements in regulation 12(4A) as at 1st October 2010.

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 £4.51 to £4.61 for each day that accommodation is provided (regulation 36(1) of the Principal Regulations).

Regulation 8 amends regulation 11(3) of the Agency Workers Regulations 2010 so that it refers to the national minimum wage entitlements as prescribed by this instrument.

The Regulations contain a transitional provision. This provides that regulations 4 and 5 do not apply in relation to any pay reference period beginning before 1st October 2010.

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.

An 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.