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Pay and the National Minimum Wage (NMW)
National Minimum Wage: A Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges
From 1 October 2009, tips, service charges, gratuities and cover charges can no longer be used to make up National Minimum Wage pay. This means that eligible workers will receive at least the National Minimum Wage in base pay with any tips being paid on top.
Alongside this our aim is to empower consumers through clear information on what happens to service charge, tip or gratuity they leave. The customer should know what is happening to their money.
Additional measures are being introduced through this voluntary code of best practice to improve the information to customers and workers. The code provides practical guidance on how to operate in a fair and transparent way, and should ensure that business are able to provide their customers with sufficient information to make an informed choice before they leave a tip or gratuity or pay a service charge.
Guidance on transparency for consumers on service charges, tips, gratuities and cover charges
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Guidance on pay and NMW rights and responsibilities
Guidance on Pay and the NMW can be found on Directgov (for workers) and businesslink.gov.uk (for employers):
Changes to how the National Minimum Wage is enforced
BIS has published a document setting out how the Government will operate the civil and criminal enforcement of the National Minimum Wage in light of changes introduced by the Employment Act 2008. From 6 April 2009 employers will face penalties if they do not comply with these changes.
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Government evidence to the Low Pay Commission
Each year the Government submits evidence on the National Minimum Wage to the Low Pay Commission. An archive of past reports is available.
Government evidence to the Low Pay Commission
NMW Impact Assessment
The government has conducted an Impact Assessment to look at impacts from increases to the NMW rates and exempting Erasmus students and Comenius assistants.
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