As of the 1st of October 2015, the National Minimum Wage (NMW) increases for employees. The NMW 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.
The minimum wage rate depends on a worker’s age and if they’re an apprentice.
The rate changes are as follows:
21-24 – Rising to £6.95 per hour, an increase of 25p.
18-20 – Rising to £5.55 per hour, an increase of 25p.
Under 18 – Rising to £4.00 per hour, an increase of 13p.
Apprentices – Rising to £3.40 per hour, an increase of 10p.
You may have noticed that the National Living Wage is not increasing in October. This was introduced in April 2016 for those aged 25 and over at the rate of £7.20 per hour and this rate will continue to apply until April 2017. The quoted increase from next April is £7.60 per hour but this has not yet been confirmed.
Changing these rates and using payroll software can lead to problems for a lot of small businesses who do their own payroll, or who simply don’t have the time to give to a background task, so why not let us do it for you? We will keep you on the correct path, ensuring your PAYE system is run efficiently and legally, including all National Minimum Wage updates, informing you what to pay and when, calculating the more complex areas of sick pay, new tax codes and employee detail changes.
Email us on email@example.com or call us on 01324 411809 for a free no obligation meeting to discuss your needs.