Minimum Wage
Minimum Wage
The National Minimum Wage Rates now change annually on 1st April.
From 1st April 2017:
£7.50 an hour for workers aged 25 and over
£7.05 an hour for workers aged 21 to 24
£5.60 an hour for workers aged 18 to 20
£4.05 an hour for workers aged 16 to 17
£3.50 the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship.
Sleep-ins
This is where an employee overnights and is allowed to sleep.
Employment Appeal Tribunal 21/4/17
mencap-sleep-ins-national-minimum-wage-calculation/
HMRC press release 29/01/18
The rates for the National Minimum Wage and the National Living Wage will be going up on 1st April. Employers can often fail to implement the annual rate increases so it’s a good time to make sure that they are getting it right.
It is also important to consider other common payroll related mistakes that should be avoided. These include:
• Including tips, gratuities, service charges and cover charges as part of minimum wage pay. They do not count even if they are administered through payroll and they shouldn’t be included when calculating minimum wage pay for employees.
• Including premium rates of pay as part of minimum wage pay. An employer may pay a worker at a higher rate than their standard pay rate for some of the work they do, for example overtime or night shifts. However, this premium element of pay, which exceeds the worker’s basic rate, does not count towards minimum wage pay because it is not guaranteed income;
• Making wage deductions for items or expenses that are connected with the job such as uniforms; this will reduce a worker’s pay for minimum wage purposes.
In any given pay period a worker’s pay must not fall below the National Minimum Wage rate. An employer who fails to ensure this could be faced with financial penalties and may be named and shamed in a government press release.
To find out more about the National Minimum Wage read our Guide for Employers .
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