The National Minimum Wage Increase

Are you Ready For April 1st?

Currently, the government’s National Minimum Wage is £6.70 per hour and effective from the 1st of April the National Living Wage for individuals over the age of 25 will be £7.20. This increase by 50 pence will help over one million low paid workers in the UK.

April 1st is fast approaching and there are certain tasks which you can be doing to ensure you are prepared in time, not following these guidelines could mean you will be held legally responsible.

The tasks include:
If you are not prepared in time or you fail to comply with these rules by not paying, you will be forced to pay the amount of money you ‘saved’ from not paying the employee the correct amount, plus a penalty of up to 100%.

  • Finding out how many members of staff are eligible for the new rate.
  • Updating the company payroll in time for 1st April 2016
  • Communicating the changes to any staff

It is against the law for employers to pay workers less than the NMW or to falsify records. If an employer doesn’t pay their employees the correct rate of pay, they should try to resolve this informally first, if this does not work a formal grievance to their employer should then follow.

A worker can make a complaint to HMRC who will investigate this further at any time, if the HMRC find evidence that the employer does not pay at least the National Minimum Wage, they will receive a notice of arrears and a penalty notice for not paying the correct amount.

Here is everything you need to know about the National Minimum Wage

If you haven’t thought about this yet, or are unsure of the system you have in place to make sure you are ready for the NMW increase contact us for more information and sound advice.