Employer service payroll news
There have been some significant changes regarding the National Minimum Wage, which will take place in October 2014. Here is a summary of what is to come together with all the relevant information you might need to know.
NATIONAL MINIMUM WAGE EFFECTIVE 1 OCTOBER 2014
Aged 21 and over – £6.50 per hour
Age 18-20 inclusive – £5.13 per hour
Aged 16 and 17 – £3.79 per hour
Apprentices – £2.73 per hour
Accommodation offset – £35.56 per week
PENALTIES FOR NON COMPLIANCE
Employers who fail to pay the minimum wage can face prosecution, risking a criminal record and a £5,000 fine.
EXCLUSIONS TO THE NATIONAL MINIMUM WAGE
The majority of workers age 16 and over qualify to receive the national minimum wage. Exclusions from the right include au pairs, family members in the family business, voluntary workers and apprentices over 19 and in the first 12 months of employment or under the age of 19.
CALCULATING THE MINIMUM WAGE
Calculating whether an employee has been paid the national minimum wage can be very complicated. In essence, the employer should divide the amount of gross pay by the number of hours worked, but there are different rules relating to different types of work.
Employers must keep records to show that they have paid their workers the national minimum wage for three years after the pay reference period that the records cover.
If you would like further information on any of the above matters please contact Margaret Merrifield on 01524 388719 or e-mail firstname.lastname@example.org