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September 25, 2014

National Minimum Wage Increase

National Minimum Wage IncreaseFrom 1st October 2014 there will be an increase in the National Minimum Wage. The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law.

It doesn’t matter how small an employer is, they still have to pay the minimum wage. This means you will need to ensure you pay your employees at least the following hourly rates in accordance with their age:

£6.50 for workers 21 and over
£5.13 18 – 20 years
£3.79 for 16-17 years, who are above school leaving age but under 18
£2.73 for apprentices under 19 or 19 or over who are in the first year of apprenticeship

It makes no difference to a worker’s entitlement to the National Minimum Wage whether they work for you

  • full time or part time
  • agency worker
  • temporary or casual worker
  • piece worker
  • home worker

Here are some example of workers not entitled to the minimum wage:

  • self-employed people running their own business
  • company directors
  • family members of the employer living in the employer’s home
  • non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and aren’t charged for meals or accommodation (eg au pairs)
  • higher and further education students on a work placement up to 1 year

For further information about the National Minimum Wage rate, please look at the HMRC or Government website.

 

 

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