National Minimum Wage - don't forget the changes on 1 October 2015
The National Minimum Wage rates change on 1 October 2015 and it is important that all employers increase hourly rates accordingly on this day.
If robinson+co processes your payroll then we will deal with matters for you.
The new rates are:
•Workers aged 21 and over - increased to £6.70 per hour
•18 to 20 year olds – increased to £5.30 per hour
•16 to 17 year olds - increased to £3.87 per hour
•Apprentices - increased to £3.30 per hour*
*You should note that this rate is only for apprentices if they are aged under 19 or in the first year of the apprenticeship. After that normal rates apply.
However, as explained in our article about the Summer Budget here, from April 2016 employers will have to pay people aged 25 and over a premium on the NMW. This increases the NMW to £7.20 an hour. This could have a detrimental effect on your cash flow and you should contact your Engagement partner for further advice on this point, although we are discussing it with clients as we see them.
This means there will be 5 different rates of which employers have to be aware in order to avoid penal financial fines if they are found to be in the wrong. The government is also warning employers that it intends to increase the penalties for not paying the National Living Wage, and to provide funds so that errant employers can be prosecuted.
If you have any questions or queries please contact our PAYE team - Deirdre on 01946 692423 firstname.lastname@example.org Christine on 01900 603623 email@example.com or Helen on 019467 25808 firstname.lastname@example.org