The national minimum wage (NMW) always increases in October, right? Wrong. This year the new rates of NMW apply from 1 April 2017. This is on top of the last compulsory pay rise for those aged under 25, which applied from 1 October 2016. The current and new hourly rates are below.
It is crucial to know which of your employees is entitled to each rate of the NMW, and from what date. All working time must be paid, including raining, overtime, and queuing for security checks.
For miscalculating NMW payable, HMRC can impose a penalty of up to 200% of the underpaid amount. In addition, you must make good the unpaid wages to your worker.
| For pay periods starting after | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
|---|---|---|---|---|---|
| 1 April 2017 | £7.50 | £7.05 | £5.60 | £4.05 | £3.50 |
| 1 October 2016 | £7.20 | £6.95 | £5.55 | £4.00 | £3.40 |
Where you underpay wages by £100 or more across your workforce, HMRC can include your business on a ‘name and shame’ list of employers. That list doesn’t explain that the underpayment was due to an innocent mistake, even if it was.
We can help you check that your NMW calculations are correct.
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