National Minimum Wage/Living Wage
Minimum Wage Increases from 1 April 2018 20 February 2018
The National Minimum Wage (Amendment) Regulations 2018 have been laid before Parliament for approval and will come into force on 1st April 2018.
This instrument amends the National Minimum Wage Regulations 2015.
The rates have been increased in line with the recommendations of the Low Pay Commission (LPC). Each of the rates listed below have been accepted by the Government and are due to come into force on 1 April 2018, subject to Parliamentary approval.
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. We have certainly seen examples of well-known employers, hit the headlines for unintentionally paying below the NMW; so ahead of the increases in April, it is worth checking your processes, and also considering the main common payroll related mistakes that should be avoided: • 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
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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