Increases in the National Minimum Wage

2014-10-01 Jennifer Renney-Butland posted:

From today (1st October 2014), several key employment law changes come into force including increases in the National Minimum Wage.

The new minimum hourly rates are as follows:

  • Standard adult rate (applicable to those aged 21 and over): £6.50
  • Development rate (applicable to workers aged between 18-20): £5.13
  • Young workers rate (applicable to workers aged under 18 but above the compulsory school age who are not apprentices): £3.79
  • Apprenticeship rate (applicable to apprentices under 19 or those aged 19 and over but in the first year of their apprenticeship): £2.73
  • Accommodation offset limit (if an employer provides a worker with free accommodation, some of its value can be counted towards national minimum wage): £5.08

It is important for employers to pay their workers the minimum wage as the State could issue a notice of underpayment for failing to comply, and could result in civil proceedings in the civil courts or in the employment tribunal. In all cases that a notice of underpayment is issued, HMRC will refer the matter to the Department of Business Innovation and Skills to consider naming and shaming the employer for failing to pay the minimum wage. For a small minority of persistent employers who refuse to co-operate, criminal investigations and penalties could be imposed.

If you have any queries about the national minimum wage or any other legal obligations, contact us today on 01225 632240 or at info@renneyandco.com

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