National Minimum Wage Increase
Back in June we shared some of the excuses HMRC have received from employers not paying the minimum wage.
As of the 1st October the minimum wage was increased to £6.50 per hour, this will see more than a million employees seeing a pay rise by as much as £355 a year.
The National Minimum Wage rates from 1 October 2014, as recommended by the Low Pay Commission (LPC), will be:
- a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
- a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
- a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
- a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
The Business Secretary Vince Cable officially welcomed the LPC’s assessment that 2014 will mark the start of a new phase of bigger increases, provided economic conditions continue to improve.
Here at Leonherman we understand it is easy to make a genuine mistake if you employ part time employees or have employees who take study leave, paying them the incorrect amount can be easily done, but the fines are not to be ignored.
If you are unsure of what you should be paying your employees get in touch with our Payroll Team or call 0161 249 5040