The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice. It’s important to note that these rates, which come into force 1 October 2016 must be applied to pay reference periods beginning on or after that date.
As an employer, you have certain duties. These include:
- Staying compliant
- Assess eligibility for each employee
- Take the appropriate payroll action.
Employers who don’t pay the National Minimum Wage rates are liable to a 200% penalty of the arrears amount. HMRC has investigated more than 70,000 employers and last year identified £10.3 million in arrears for workers.
We hope you find the information useful. If you have any further questions, please get in touch with our Payroll team on 01255 850 002 or email firstname.lastname@example.org
Useful links – National Minimum Wage Rates 2016