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.

 

RECORDS

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 pay@mooreandsmalley.co.uk