National Minimum Wage Increase
Following the changes recommended by the Low Pay Commission, the rates of National Minimum Wage (NMW) announced in March 2015 come into effect for pay periods starting on or after 1 October 2015. The changes are:
- the main adult rate (for workers 21 and over) will increase by 20p to £6.70 an hour
- the rate for 18 to 20 year olds will increase by 17p to £5.30 an hour
- the rate for 16 to 17 year olds will increase by 8p to £3.87 an hour
- the rate for apprentices will increase by 57p to £3.30 an hour
Most workers in the UK, over school leaving age, are legally entitled to be paid at least the NMW and all employers have to pay it if the individual is entitled to it. It makes no difference:
- if the employee is paid weekly or monthly, by cheque, in cash or in another way
- if the employee works full time, part time or any other working pattern
- if the employee works at the business premises or elsewhere
- what size the business is
- where the business is in the UK
The penalties for employers failing to pay the NMW can include:
- Payment of arrears to workers affected
- Payment of a penalty to the Secretary of State amounting to up to 100% of the total underpayment subject to a maximum penalty of £20,000 per employee
- Criminal Prosecution and stiffer penalties for the most serious cases
If you would like more information in connection with this please contact our Tax Director, Jenny Marks.
To see our other news items please visit our Muras Baker Jones – Blog.