National Minimum Wage

National Minimum Wage
36
Figure 2.12: Bite of the Adult National Minimum Wage at the Median for Those Aged 22
and Over, by Groups of Workers, UK, 2007/08-2010/11
All
Ethnic minorities
Migrant workers
Disabled people
Women
Unqualified
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
Adult National Minimum Wage as a proportion of median earnings
for workers aged 22 and over (per cent)
2007/08 2008/09 2009/10 2010/11
Source: LPC estimates based on LFS Microdata, income weights, quarterly, four-quarter averages, UK, Q4 2007-Q3 2011.
Earnings Distributions
2.36 The impact of the minimum wage can also clearly be seen in Figure 2.13, which shows a
spike in the hourly earnings distribution at £5.93, the adult rate effective in April 2011.
Around 3 per cent, or nearly 750,000 workers, were paid at that rate. A further 1 per cent
(or 233,000) were paid less than the minimum wage. This is not necessarily evidence of
non-compliance. Some employers can legitimately pay workers less than the minimum wage.
These include those who provide accommodation, employ apprentices, or utilise the Fair
Piece Rate system. In total, 1.4 million workers (or 5.8 per cent of the workforce) were paid
below the then forthcoming minimum wage rate of £6.08 an hour.