FIVE THINGS YOU NEED TO KNOW ABOUT NATIONAL MINIMUM WAGES

If you are an employer - or an employee - the increases in National Minimum Wages may affect you. Read on to find out.

Five things you need to know:

1 The new rates for National Minimum Wage and National Living Wage

These are the rates as of 1 April 2018.  They vary according to your age and whether you are an apprentice or not. So this April wage run may be the first time these rates apply.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2018 £7.83 £7.38 £5.90 £4.20 £3.70

These were the previous rates so you can see how they have gone up:

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
Pre-April 2018 £7.50 £7.05 £5.60 £4.05 £3.50

The increases for the 18-20 and 21-24 year olds are apparently the largest increases in a decade. Although 33p and 30p don’t sound like a lot, it is around a 5% increase and potentially worth around £650 a year.

2 It is called the National Living Wage if you are over 25

3 The National Living Wage and National minimum Wage are mandatory.  Employers have to pay them no matter how small your business is.  The maximum fine for non-payment is £20,000 per worker with a ban from being a director for 15 years if you don’t pay, according to ACAS, so worth checking!

4 Backpay calculator
There is a handy calculator here to see if you owe someone backpay. If you have realised in horror that you have not been paying someone the minimum amount for a while, you can work out how much you owe them here: https://www.gov.uk/minimum-wage-calculator-employers  Be warned – you do need all the details before you start.  There is also one for employees here: https://www.gov.uk/am-i-getting-minimum-wage

5 Accommodation counts
If you provide accommodation for an employee, that can count towards their minimum wage, but other benefits do not.

As ever, ask us if you have any queries.
Wishing you a week above the minimum

Atkinsons

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