The government has launched an awareness campaign to encourage workers to check their pay to ensure they are receiving at least the statutory minimum ahead of the NMW and NLW increases on 1 April 2017.
Employers need to ensure they are paying their employees at least the NMW and NLW.
|Rate from 1st October 2016||Rate from 1st April 2017|
|NLW for workers aged 25 and over (introduced and applies from 1st April 2016)||£7.20||£7.50|
|the main rate for workers aged 21-24||£6.95||£7.05|
|the 18-20 rate||£5.55||£5.60|
|the 16-17 rate for workers above school leaving age but under 18||£4.00||£4.05|
|the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship||£3.40||£3.50|
This will be the second increase in six months for the NMW rates. Going forward the NMW and NLW rates will both be reviewed annually in April.
- In a recent article in the Employer Bulletin, HMRC cite common errors:
- not paying the right rate, perhaps missing an employee’s birthday,
- making deductions from wages which reduce the employee’s pay below the NMW/NLW rate,
- including top ups to pay that do not qualify for NMW/NLW,
- failure to classify workers correctly, so treating them as interns volunteers or self employed and
- failure to include all the time a worker is working, for example time spent shutting up shop or waiting to clear security.
If you are finding the burden of running your own payroll to much or you believe you may have NMW problems get in touch with one of the team for a confidental meeting.