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The National Minimum Wage Just Got Bigger!

Although the vast majority of hairdressing businesses comply with the law, there are a few who are still paying their staff less than the minimum wage. Salons who don't comply might receive a visit from Her Majesty's Revenue and Customs officials.

On October 1st, the National Minimum Wage increased to £5.05 an hour for workers aged 22 or over and to £4.25 an hour for workers aged 18 to 21. The rate for 16 and 17 year-old workers, introduced last year, stays at £3.00 an hour. A further increase to £5.35 is projected for October 2006.

This will be fully reviewed by the Low Pay Commission in its annual Report to Government in February 2006. The increase has been backed by hairdressing organisations as a means of ensuring that all salon workers are paid a fair wage.

The National Minimum Wage (NMW) was introduced in 1999, to establish fairness in the workplace. Before the NMW came into force, hundreds of thousands of workers were paid as little as £2 per hour. Minister for Employment Relations Gerry Sutcliffe has outlined a sector-focused approach to dealing with those employers who are still paying their workers below the minimum wage.

For the first year the focus will be on employers in the hairdressing sector. A guidance has been published which highlights the minimum wage issue to the hairdressing sector. Entitled "The National Minimum Wage And The Hairdressing Sector," the document is designed to ensure that employers understand their legal duty to pay their workers the minimum amount. Her Majesty's Revenue and Customs officials will be visiting employers suspected of failing to comply with the law. The visits will also be used to encourage workers being paid below the minimum wage to speak up.

Professional bodies in the hairdressing sector have welcomed the initiative. Alan Goldsbro, CEO of the Hair and Beauty Industry Authority, said, "If hairdressing is to be regarded as a serious profession, it needs to act within the law. Everyone is entitled to a fair wage for their hard-earned skills, and it is unfair that a small minority of businesses undermine the reputation of the entire industry."

Ray Seymour, General Secretary of the National Hairdressers Federation, said, "We welcome moves to make the application of the national minimum wage consistent and understandable across our industry, as it is our experience that most employers want to comply with the law and only fail because of ignorance or confusion."

The national minimum wage increased in October.

• The adult hourly rate (for workers aged 22 and over) increased from £4.85 to £5.05.
• The development rate (for workers aged 18-21 inclusive) increased from £4.10 to £4.25. The development rate can also apply to workers aged 22 and above during their first 6 months in a new job with a new employer and who are receiving accredited training.
• The rate for 16 and 17 year olds remained at £3.00. 16 and 17 year old apprentices ware exempt for the young workers rate.

For general help and confidential advice about the National Minimum Wage, contact the NMW Helpline on 0845 6000 678. The helpline is run by Her Majesty's Revenue and Customs on behalf of the DTI. Calls will be charged at local rates.