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A Payroll Solution For National Minimum Wage Workforces

A Payroll Solution For National Minimum Wage Workforces
Alison Clynes
Written by
Sunday, 23 May 2010 23:00

The National Minimum Wage was legally inaugurated on 1st April 1999, and applies to almost every employee in Britain. The aim was to provide decent minimum levels of pay for the lowest paid workers and to create a level playing field amongst employers. The hourly rates are as recommended by the Low Pay Commission, and have increased several times since 1999. People responsible for administering payroll services need to keep vigilant for these changes, since implementation is a statutory requirement for employers.

The rates are to rise again on October 1st 2010.

For employees aged 22 years and over, the hourly rate rises from £5.80 to £5.93.

The Youth Development Rate, for ages 18-20, rises from £4.83 to £4.92 per hour.

For young workers aged 16-17 the hourly rate raises from £3.57 to £3.64.

In addition, apprentices' pay is covered by the legislation for the first time. There will be a minimum rate of £2.50 per hour for apprentices aged less than 19 years, or for those aged over 19 but in their first year of apprenticeship. Undoubtedly, this will all influence the payroll solutions used by organisations across the country.

The Low Pay Commission feels the system is fair and easy to administer, but keeping up with the frequent changes, as workers reach milestone birthdays and governments alter pay rates, can be tricky and time-consuming even for the most experienced wages staff. In a business which employs several young people and has a largely basic-rate workforce, preparing the payroll can be extremely challenging. Letting a professional payroll company, such as Dataplan Payroll, provide you with payroll outsourcing services makes everything so much easier.

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