Government policies

National minimum wage

Starting dates

April 1999: introduced

Uprated annually in October of each year

Key department DTI
Key delivery agency HM Revenue & Customs and employers
Budget/target/comment

When first introduced, set at £3.60 per hour for those aged 22 years and over, unless in an exempt category or on a registered training scheme (in which case only £3.20). £3.00 per hour for those aged 18-21.

Introduced for the first time for those aged 16 to 17 in October 2004.

The table below shows how the rates have changed over time.

Date Aged 22 and over Age 18-21 Age 16-17
April 1999 £3.60 £3.00 none
October 2000 £3.70 £3.20 none
October 2001 £4.10 £3.50 none
October 2002 £4.20 £3.60 none
October 2003 £4.50 £3.80 none
October 2004 £4.85 £4.10 £3.00
October 2005 £5.05 £4.25 £3.00
October 2006 £5.35 £4.45 £3.30
October 2007 £5.52 £4.60 £3.40

The Low Pay Commission estimated that the original National Minimum Wage affected 1.3 million jobs, rising to 1.5 million after the 2001 and 2002 increases.

See the HM Revenue & Customs site for the latest information on rates.

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