In an unknown farm located at an unnamed place, a farmer was planning to fence his big land which ran into acres. The farmer knew that the task was quite cumbersome and would require additional help, so he drafted an advertisement to hire three workers for the job. He drafted a small advertisement mentioning his requirement along with the national minimum wage. Soon after came his son and found the advertisement and got confused as he was unable to understand the advertisement fully. He quickly ran to his dad and questioned him, “Dad, what is a National Minimum Wage?” The father was startled to hear such an interesting question and answered his queries.
What is National Minimum Wage (NMW)?
National minimum wage is a matter of concern as it is the primary parameter of survival. The survival of the workforce depends on monetary gains. Work is an essential part of survival, and being paid for the work done in terms of money and services is a legitimate right.
The anecdote mentioned above has a more profound connotation and for those who are somewhat unclear about the term “National Minimum Wage” first needs to accept a hard fact that we live in a world which harbours all sorts and types of people. Now, what does this statement mean? It means that if we have honest and conscientious people on the one hand, then we also have, dishonest and fraudsters also on the other hand, who do not blink an eye in cheating others of their required and allotted remuneration.
Awareness and acceptance of the point as mentioned above brought out a revolutionary change in the society, especially in the employment sector and the government of the United Kingdom approved of a “National minimum wage” system, abbreviated form NMW.
National Minimum Wage - A Step Towards Equality
National Minimum Wage or the NMW is the minimum pay per hour for which all the workers are entitled to, and moreover, the National Minimum Wage is also conditional and dependent on the age of an apprentice. It means that a worker has to be ‘of and over’ an age of 25 years to be eligible for it.
It is also essential to note here that there is another arrangement, a system called The National Living Wage (NLW) which is higher in terms of the payment compared to the National Minimum Wage. Not only that, there is a fixed criterion that irrespective of whether an employer is big or small in the matters of finance and management, still has to make a correct payment of the minimum wage. Moreover, since Great Britain has always been very systematic and fair about specific areas which include the employment sector also, so there is present a minimum wage calculator to check the correct payment of a worker.
Though the workers to are expected to be aware of their rights, yet they can check if they are receiving the proper minimum wage and whether an employer owes any payment from the past jobs to the worker.
National Minimum Wage Rates for 2019/20
|Age||Minimum hourly rate 2019-20|
|25 and over||£8.21|
|21 to 24||£7.70|
|18 to 20||£6.15|
The British government has taken sufficient care to make a system equal for both the parties: the employers and the employed and so the employers too can verify if they are making a due minimum wage payment and if there is a pending payment towards any worker of a past job.
Who gets the National Minimum Wage?
Clear guidance is also extended to the public for evaluation and working of the minimum wage for various kinds of works, and it is available in the form of a helpline and an online site. There are a dedicated helpline, Acas helpline and an online site Acas helpline Online which offers advice for both, The National Minimum Wage and The National Living Wage.
Thus the National Minimum Wage is a very positive step towards equality.