Introduction »

Lowest paid to get a boost

The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. The rates are reviewed each year by the Low Pay Commission (LPC) and from 1 October 2012 increase as follows:

• the main rate for workers aged 21 and over will increase to £6.19 (currently £6.08)
• the 18-20 rate will remain at £4.98
• the 16-17 rate for workers above school leaving age but under 18 will remain at £3.68
• the apprentice rate, for apprentices under 19 or 19 and over and in the first year of their apprenticeship will increase to £2.65 (currently £2.60).

The cost of ignoring the changes

Since April 2009 HMRC have been able to charge penalties on those employers found to be in breach of the NMW rules.

Penalties may be levied on employers where HMRC believe underpayments have occurred. The penalties range from £100 to £5,000 with 50% prompt payment discounts for employers who settle within 14 days of notification.

Any penalty payable is in addition to arrears owed to the workers. In serious cases of non- compliance, the employer may even be tried in a Crown Court and in those cases the fines are unlimited.

If you have any queries on the NMW please do get in touch.

Introduction »