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<p>The main estimate of non-compliance used is from the Annual Survey of Hours and
Earnings (ASHE)[1]. The table below shows the proportion of jobs held by those aged
22 and over, paid below the full adult national minimum wage (NMW) (at the time of
the ASHE survey) by sector. It is reproduced from the latest Low Pay Commission report[2].</p><p>This
is a proxy measure for non-compliance as these figures include people who for legitimate
reasons are paid less than the adult NMW for example because they are on the apprentice
NMW rate or are living in accommodation provided by their employer. The ASHE survey
is based on a sample of employee jobs drawn from HMRC’s Pay-As-You-Earn income tax
records and consequently it does not include all workers who earn below the Lower
Earnings Limit. These two factors tend to offset each other but we do not know definitively
how large the combined effect is. However, we believe that it is small.</p><p> </p><p>Proportion
of jobs held by those aged 22 and over, paid below the national minimum wage by sector,
UK, 2012-13</p><p> </p><table><tbody><tr><td><p>Sectors</p></td><td><p>Paid below
2013 April NMW rate (£6.19)</p></td></tr><tr><td><p>Hairdressing</p></td><td><p>3.5</p></td></tr><tr><td><p>Childcare</p></td><td><p>2.8</p></td></tr><tr><td><p>Hospitality</p></td><td><p>2.5</p></td></tr><tr><td><p>Cleaning</p></td><td><p>2.4</p></td></tr><tr><td><p>Leisure,
travel & sport</p></td><td><p>1.4</p></td></tr><tr><td><p>Retail</p></td><td><p>1.3</p></td></tr><tr><td><p>Transport</p></td><td><p>1.3</p></td></tr><tr><td><p>Agriculture</p></td><td><p>1.2</p></td></tr><tr><td><p>Storage</p></td><td><p>0.9</p></td></tr><tr><td><p>Social
care</p></td><td><p>0.8</p></td></tr><tr><td><p>Textiles & clothing</p></td><td><p>0.8</p></td></tr><tr><td><p>Office
work</p></td><td><p>0.8</p></td></tr><tr><td><p>Employment agencies</p></td><td><p>0.7</p></td></tr><tr><td><p>Food
processing</p></td><td><p>0.6</p></td></tr><tr><td><p>Non-food Processing</p></td><td><p>0.4</p></td></tr><tr><td><p><strong>Whole
economy</strong></p></td><td><p>0.8</p></td></tr></tbody></table><p> </p><p> </p><p>
</p><p> </p><p>[1] ASHE is a survey of employees completed by employers which we can
use to look at workers earning at or below the NMW rate.</p><p>[2]<a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/288841/The_National_Minimum_Wage_LPC_Report_2014.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/288841/The_National_Minimum_Wage_LPC_Report_2014.pdf</a></p><p>
</p><p> </p>
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