It is that time of year once again when rates increase for your employees that are paid the National Minimum wage
You may already be aware that from the 1st of October 2015 the rates increased to :-
The Adult Rate will increase from £6.50 to £6.70 The rate for 18-20 year olds will increase from £5.13 to £5.30 The rate for 16-17 year olds will increase from £3.79 to £3.87 The apprentice rate will increase from £2.73 £3.30
It is worth noting that it is a criminal offence not to pay a member of your staff the minimum wage or to falsify payment records. If HMRC do find that an employer hasn’t been paying the correct rates, there will be a penalty and any arrears have to be paid to the employee immediately not to mention the “name and shame” approach HMRC now take.
Be aware that some types of employees are not entitled to the national minimum wage, here are some examples
• Self-employed people
• Company directors
• Workers on a government employment programme
• Share fishermen
• Members of the armed forces
National Living Wage
From April 2016, the national living wage will be £7.20 an hour work workers ages 25 and older. The minimum wage will still apply for workers ages 24 and under.