Employers anticipate national minimum wage increase

UK small business owners are being urged to prepare their books ahead of changes to the national minimum wage from 1st October 2014.
 
For the first time in six years the minimum wage will rise higher than inflation. The adult (over 21) minimum rate of pay per hour will increase by 19p to £6.50. For workers aged 18 to 20, wages will rise to £5.13, an increase of 10p; while 16-17-year-olds and apprentices will receive an additional 7p and 5p per hour respectively, taking their total pay to £3.79 and £2.73 per hour.
 
Businesses are being warned to prepare ahead of the deadline or risk facing penalties from the Government.
 
The Government has confirmed it will ‘name and shame’ employers that miss the deadline and continue to pay below the new national minimum wage. More severe penalties will be dished out to persistent underpayers, including a fine of up to £20,000 per worker; a significant increase on the previous fine of £5,000.
 
Vince Cable, business secretary, said: "Anyone entitled to the National Minimum Wage should get it.
 
"Paying anything less than this is unacceptable, illegal and will be punished by law. So we are bringing in tougher financial penalties to crack down on those who do not play by the rules.

"The message is clear – if you break the law, you will face action."
 
Employees should therefore check what rates they should be paying to each worker as different rates exist for different types of workers. Factors such as the employee’s age, the provision of accommodation, travel time and uniform hire can all affect how much a worker is owed and must therefore be taken into account.
 
If you are unsure about what you should be paying your workforce you can visit www.gov.uk/national-minimum-wage/ for free advice and information or call our friendly team today on 0800 0523 555.

Date published 9 Sep 2014 | Last updated 9 Sep 2014