The National Minimum Wage rates are changing from 1st October 2014. The new hourly rates are shown below:
£6.50 for workers aged 21 years old and over
£5.13 for workers between 18-20 years old
£3.79 for 16-17 year olds
£2.73 for apprentices under 19 years old, or 19 years old and over who are in the first year of apprenticeship
The National Minimum Wage is the minimum pay per hour workers are entitled to by law. Paying workers correctly and in compliance with the law is crucial. Employers who fail to pay workers the right amount will be publicly named and shamed, face a financial penalty of up to £20,000 per employee, and may even be prosecuted.
Employers, you should prepare for this change by:
- Ensuring you have the correct details for each empoyee, such as birthdays and whether they are an apprentice
- Checking what rates you should be paying to each worker as there are different rates for different types of workers
- Updating your payroll for each employee to ensure you are paying the correct amount
If you are unsure about what you should be paying, please contact James Edmonds on (01626) 202329.