New date for National Minimum Wage increases
Mar 10, 2017
It’s not the most exciting of news updates, but we wanted to draw your attention to the fact that National Minimum Wage rates are once again on the increase, only six months after the last rise. The reason for this is to tie them in with the increase in the new Living Wage rate, which will take place from 1st April 2017. Going forwards there will no longer be a National Minimum Wage increase in October, and both rates will increase annually in April.
The following table illustrates what changes apply:
The rate for apprentices only applies to apprentices under 19 years old, or to those aged over 19 but in their first year of apprenticeship. All other apprentices are entitled to the National Minimum Wage for their age.
Just to remind you that there are strict penalties for non-compliance with National Minimum Wage. HMRC are the body who enforce the National Minimum Wage, and if they find that you have underpaid any worker they will issue you with a notice of underpayment. This will show the arrears that you must pay your workers, plus the penalty you must pay HMRC. As from 1st April 2016 the maximum penalty has risen to the rate of 200% for underpayment, and the maximum penalty is now £20,000 per worker, not per notice.
Details of how and where to appeal are included with the notice of underpayment, and further information about enforcement of the National Minimum Wage is available online. Please get in touch with us if you have any queries.