The minimum wage for workers aged 16-18 is £4.55 (April 2020-21)
For workers, aged 18-20 is currently £6.45 (April 2020-21)
Readers Question: What are the minimum wage rates for 16, 17 and 18-year-olds. Should the minimum wage be increased? Should there be a minimum wage rate for children under 16?
Minimum Wage Rates from April 2020
- £8.72 – 25 and over
- £8.20 – Age 21-24
- £6.45 – Age 18-20
- £4.55 – Under 18
- £4.15 – Apprentice rate. (An apprentice means the firm has to devote a certain time to training the worker. Traditionally apprentices get lower pay to compensate the firms’ cost of training them.
Can 13, 14, and 15-year-olds get a minimum wage rate?
No, the minimum wage rate only applies to workers who are 16 and above.
The youngest age your child can work part-time is 13 years old, with the exception of children involved in: television, drama, film. [1. Child employment Direct gov]
Do young workers benefit from a national minimum wage?
Benefits of Min Wage
- A minimum wage is an effective tool for increasing wages of the lowest paid group of workers.
- Since the minimum wage has been introduced in 1997, unemployment has fallen, suggesting fears over real-wage unemployment have been misplaced.
- Minimum wages can increase labour productivity. Workers can feel more motivated with higher wages (efficiency wage theory). Also, if firms have to pay more, then they have an incentive to invest in workers and capital to increase labour productivity.
- In an era of low real wage growth, the minimum wage has played an increasing role in causing higher living standards.
Concerns over minimum wage
- An argument advanced is national minimum wage increases costs for firms and this can discourage employment opportunities. If the minimum wage rate rises too fast, it could cause unemployment in the future.
- The gap between workers under 18 and over 25 means that firms have a cost incentive to substitute older workers for younger workers. In labour intensive industries (e.g. fast food) firms may prefer to give longer hours to the youngest workers because they are nearly 50% cheaper than mature workers.
- Blackmarket. Another issue is that a legal minimum may encourage firms to pay young workers in cash and avoid legal restrictions.
- Regional inequality of wages. A national minimum wage can cause unemployment in the northeast (where wages are low) but have little effect in London, where wages are higher.
Does a minimum Wage encourage Labour market Participation?
- In theory, increasing the minimum wage for 16-18 year old workers would increase the incentive to join the labour market because work will become more attractive compared to studying at school and not earning.
- However, the minimum wage for 16 and 17 year-olds is still relatively low. It is £4.20 for people under 18. Therefore, the benefit of working on the minimum wage may still seem insignificant compared to the benefits from studying and getting qualifications which will enable higher lifetime earnings.
- Also, many 16 and 17 year-olds probably live rent free therefore there is not the same economic necessity to go out and get a job.
- Personally, I think the effect of a minimum wage for 16-18 year olds is relatively insignificant, I can’t think of many students who would give up A-levels just so that they could go and work in McDonald’s for £4.20 an hour.
- What is most likely is that there will be an increase in the participation of young workers doing part-time jobs in addition to studying full time.
Case for Increasing the Minimum Wage Rate
- Unfair firms can pay a lower wage rate to young workers doing the same job as people over 21.
- Efficiency Wage Theory – the idea if you pay a higher wage, you will get greater motivation and labour productivity.
Problems of Increasing the Minimum Wage Rate for young workers
- Could lead to unemployment and fewer job opportunities. Many firms may be unwilling to employ workers if there is a significant increase in the minimum wage rate. This would particularly affect labour-intensive industries like hairdressers and cafes.
- Arguably young workers lack experience, and so firms need to spend time and money on training them. Therefore a lower minimum wage rate is justified to pay for the costs of on-the-job training.
How Does the UK compare to other countries?
The UK minimum wage compares well compared to other countries like the US, Spain and Portugal, but still lower than some EU countries. International minimum wage rates
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Hey i live in west yorkshire, curently working part time on a milk round, earning 5 pound an hour. Monday morning work 4am til 7.30 and same again tuesday, 2 days a week brings 38 pound 50 not bad to say im 16, great while im still at school.
Hi, in reference to Kim Knight..
I am 16 years old and get payed 2 pound less than any adult at my work place. I am in charge of co checking, disposals, reductions, foas (functioning on avaliability (basically if I screw up there I screw up the orders)) ect blah blah. So no, age has nothing to do with it. Give anyone 12 weeks of training and they will be as good as the next person. I do a lot of work, to a good standard. Some people in the store probably do less work and get payed MORE. Just why? While I am alrite on my pay, 4.54 (I suppose) I can’t stop comparing it to what 18+ people get. It seriously annoys me.. Its like paying a black person less than a white person. You just can’t do that, as with basing pay on genders so WHY age? As long as the job is done, in the time limit should it really matter? And another thing, 15 year olds have to pay adult prices at the cinema now.. And it is 16 for trains and busses. What the f..luck :P. The government put out a ‘generous minimum wage for 16 and year olds’.. Yeah bullshimmy.. Unfair. Not right. Sort it out! I wouldn’t be bothered if the adult minimum wage was the same.. Wow I need to punch something now cya 😛
im a 16 year old girl and working as a receptionist in a soliciters ive just left school and come straight in to the job i get paid 3.53 an hour i do 40 hours a week and i love the job but do seriously think 16 year old should get paid more.
Most of you are so stupid OMG get over it. Adults get paid more because on average they are more expirenced, more reliable and LESS IMMATURE! you are lucky most of you are still in school and do a little paper round or a saterday job at a hair dressers sweeping a floor and making tea yeah really hard work try doing a 50 hour week to be able to afford to go out on you ONE day off to be able to pay rent so that you have a roof over your head and food to f**king eat im only 16 and i do it
my mum ( a single parent ) kicked me out because i didnt have a job try living with your mate knowing your own mother wont help you out and doesnt care that your really strugglin ! do u pay for your own internet your rent your phone bill your dinner etc??? didnt think so get in the real world!!!!
I Pay £40 a month for digs. and thats not including helping my mum out. i am only 16 and i have had to work 12 hour shifts. i have to work alot of hours to keep myself on my feet. i think this minimum wage has to go up. no 16 – 17 year old can live on this wage! we are in the real world now and it pays alot!
i am gettin payed 3.60 an hour for 8hours and only getting 25 quid, and 18 yr olds aere getting £1.30 more just because they are older, it is not acceptable, everyone should be treated the same as others, not like dole dossers who get more money than people who have a job!!!
i work at the bolholt hotel in walshaw. im 16 year old and i work from half past 3 in the afternoon till 2 o’clock in the morning and i get 35 pound for one saturday night and we dnt get tips because we are only waiters. its terrible but i need the money
I work in Primark and I get paid 4.17 an hour. But across the road someone the same age as me (16) that works in New Look gets paid 5.75 and hour and 50% off clothes. Here’s some advice.. do not get a job in Primark they treat there staff like, CRAP!
hi my name is Rachel and my husband is 18 years old and is looking for a good paying job to help support me and our baby boy who will be born in february so please help him find a job he’s a dropout working on getting his GED though please please please help him out. Thank you very much!
In reply to Sarah, none of these people are immature, everything costs money these days, and most teenagers are made pay for things themselves, everyone over 16 is made pay adult prices for things like the cinema and bus fares etc. How can they pay for it when they get such low wages?
If you get kicked out of your house, then that is your problem, these people have just as much right to complain as you have, I think maybe it is you that should grow up
i think its disgusting
kids should be paid 4.50
I’m 16 and I work in a simple grocery store. I work from 7 till 5 and I get £3.50/ hr.
Is this right?
i think the minimum wage for people aged 16 is f£$&ing disgracefull and the govenment should be taken into a field and shot for allowing this travesty to occur