The National Minimum Wage
rates increased on 1 October. Are you fully compliant?
The new hourly rates are:
- £6.31
- the standard adult rate (for workers aged 21 and over) (up from £6.19)
- £5.03
- the development rate (for workers aged between 18 and 20) (up from
£4.98)
- £3.72
- the young workers rate (for workers aged under 18 but above the
compulsory school age who are not apprentices) (up from £3.68)
- £2.68
- the rate for apprentices (up from £2.65).
The
government is strengthening minimum wage enforcement. In future all employers
who are found not to comply with national minimum wage rules will be publicly
named and so it is vital that you get your calculations right.
This guidance provides practical advice and
examples to explain:
- what counts and does not count as pay and working hours for minimum
wage purposes
- eligibility for the minimum wage
- how to calculate the minimum wage
- how the government will enforce the minimum wage.
HM Revenue & Customs
(HMRC) is responsible for enforcing the minimum wage. Compliance officers may
carry out inspections of employers at any time and they are under no obligation
to provide reasons for an inspection. Officers have various powers to obtain
information. For example, they can require you or people working for you to
produce and explain records about minimum wage pay and can remove minimum wage
records from your premises for copying. It is a criminal offence
to obstruct a compliance officer or refuse or wilfully neglect to give
information or produce documents to a compliance officer.
Whilst you might think
that compliance with this legislation is straightforward, difficulties do tend
to arise when calculating the entitlements of apprentices, voluntary workers
and those who have accommodation provided as part of their remuneration package.
If you are in any doubt about whether you are fully complying with this
legislation, you should seek expert advice from an accountant and/or an
employment solicitor.