National minimum wages increases from 1 October

Tuesday 06 September 2016

National minimum wages increases will take effect from 1 October.

National Minimum Wage

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law and it is age dependent.

The new rates will apply from 1st October 2016 to 31st March 2017:

Age

Rate

25+

£7.20

21-24

£6.95

18-20

£5.55

16-17

£4.00

Apprentice      

*£3.40

*If in the first year and under 19 years old

The rate for 25+ is the National Living Wage which was introduced on 1 April 2016.

Rates will now change every April starting April 2017.

What happens if I don’t pay National Minimum Wage?

It is against the law for employers to pay workers less than the National Minimum Wage or to falsify payment records.

A worker can notify HMRC who will investigate the complaint. If HMRC find that an employer hasn't paid at least the National Minimum Wage, the employer will be required to pay the arrears plus a penalty for not paying the correct rate of pay to the worker.

This calculator can help you make sure you’re paying National Minimum Wage

https://www.gov.uk/minimum-wage-calculator-employers

Penalties for failure to comply with paying the National Living Wage

The penalty for non-payment is 200% of the amount owed, unless the arrears are paid within 14 days.

The maximum fine for non-payment is £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.

So it is imperative that you ensure you are complying with the current National Minimum Wage rates for all workers according to their age.

Working Time Directive - Mobile workers - September 2015

It is worth noting that the European Court of Justice gave the judgement last year that mobile workers who have no fixed place of work, and spend time travelling from home to the first and last customer, should have this time considered as working time. 

If you require advice regarding National Minimum Wage, National Living Wage or any other statutory minimum rates, we can HELP you. Contact us today to speak to a HR consultant on 01543 431 050 or email enquiries@help.gb.com.