From an administrative burden perspective comparability with the methodology applied for gender pay gap would be preferred by our members. However, our members are pragmatic and recognise that this will not achieve the same results because of the different challenges presented by ethnicity classifications.
There must be value achieved through the efforts of the software developers, payroll and HR professionals and so we recognise different methodology will be required.
If government consider that the time is right to deliver another reporting obligation on employers, in the name of transparency, significant time and structured planning will be needed. Rushed delivery will not achieve accurate outcomes.
Lessons need to be learned from the roll out of gender pay gap reporting with government engaging in greater detail with all affected stakeholders as they continue to consult.
Employers pay processes vary in size and complexity enormously and with the added challenges for gathering accurate ethnicity data, as identified within the consultation paper, will add further layers of complexity.
We see this consultation as the start of a conversation and not the end of it and look forward to being involved in further discussions.
Read the full CIPP response to the consultation on ethnicity pay reporting.
All consultation responses are available in the Policy hub under My CIPP on our website.
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CIPP survey on NMW Consultation on Salaried Workers and Salary Sacrifice 23 January 2019
Payroll Professionals have a real opportunity to influence change in this national minimum wage consultation on Salaried Workers and Salary Sacrifice. Please spare 10 minutes to share your knowledge by completing our survey.
The government has published a consultation which concerns the National Minimum Wage rules regarding salaried workers and the operation of salary sacrifice schemes.
People who perform salaried hours work are paid an annual salary in equal weekly or monthly instalments, for an annual number of hours. For example:
• Monthly paid workers who receive an annual salary for working 9am-5pm, Monday to Friday; • Term-time only workers who receive equal weekly/monthly payments but only work during term time; or • Annualised hours workers who receive equal weekly/monthly payments for working 2,000 hours a year. Legislation provides a set of rules over how compliance with the National Minimum Wage is calculated when regular salaries are paid. Certain conditions must be met in order for work to qualify as salaried hours work under the National Minimum Wage Regulations. This consultation seeks views on how effective these rules are in preventing worker exploitation. This consultation also seeks views on proposed changes to the National Minimum Wage Regulations which relate specifically to salaried hours work, including Regulations 21 and 24. In particular, the Government would welcome your views on whether, and if so how, we might amend the Regulations to include additional payment cycles and fixing the definition of the calculation year for employers, without any detriment to workers. Salary sacrifice schemes are used in some workplaces whereby a worker agrees with an employer a lower rate of gross pay in exchange for goods or services (e.g. childcare vouchers, or bicycles). National Minimum Wage regulations include provisions designed to protect workers from unfair deductions from their wages. This consultation also seeks views on the practical operation of these provisions and their effect on workers on the minimum wage.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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