Should tips paid by the public be excluded from calculations of whether or not workers are being paid the national minimum wage (subscription required)?
This issue was raised (external website) on 3 April in the House of Commons by Jim Sheridan, Labour MP for Paisley and Renfrewshire North, in a question to John Hutton, secretary of state for business, enterprise and regulatory reform. Sheridan said that elements of the national minimum wage legislation should be reviewed, because including tips in the calculation means that "the consumer in effect subsidises unscrupulous employers".
Hutton acknowledged that this was becoming accepted as a very important issue, and said that the government is looking seriously at the points raised.
The current national minimum wage legislation (subscription required) allows tips that are paid through the payroll to be counted in the minimum wage calculations, but any money distributed informally cannot be included.
• Last month, the government announced (subscription required) the latest annual increase in the national minimum wage, which will take effect from 1 October 2008. The adult rate is to rise by 3.8%, from £5.52 to £5.73 per hour.
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