The delivery of the decrease to the national living wage age will be rolled out in two steps – the first of which is in 2021, when the national living wage will be accessible to anybody aged 23 and over. Then there will be a second phase, and in 2024 anyone from the age of 21 will be eligible for pay of £10.50 per hour as a legal minimum requirement. The Guardian reported on this and noted that the move will require amendments to secondary legislation but no changes to standard legislation as the figures are proposed by the low pay commission, an advisory body sponsored by the Department for Business, Energy & Industrial Strategy (BEIS).
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National Minimum Wage Webinar from HMRC 21 October 2019
HMRC is offering a webinar on 6 November 2019 (the same date as the Chancellor’s Budget is intended to take place) which concerns the trials and tribulations for employers in ensuring that they are paying their staff the National Minimum Wage and the National Living Wage.
On the surface, this process sounds simple but there are many genuine mistakes that can be made that result in non- compliance. This webinar aims to provide solutions and guidance surrounding these areas.
Sign up for the webinar here.
CIPP Payroll training courses
The CIPP offers a one-day classroom-based course which aims to equip delegates with the knowledge and skills required to understand NMW and NLW. The course gives an overview of the correct rates to be applied, and to whom, and examines which payments to include or exclude in calculations. There is also a section on record- keeping and compliancy. A great course for any busy payroll professionals who need to refresh their knowledge and understanding or for those new to payroll who need to learn about NMW / NLW within a short timeframe.
The course runs every month, with the next one taking place in Leeds on Tuesday 26 November.
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HM Treasury issues a review of international evidence in relation to the impacts of minimum wage 7 November 2019
HM Treasury has published documentation that compiles research conducted by Professor Arindrajit Dube in relation to the international effects of minimum wages and how the findings could factor into UK policy on the matter.
The independent review, commissioned by the government, concludes that to consider more ambitious increases to the National Living Wage (NLW) would not be detrimental to rates of employment. The government aimed for the uplifts to result in the NLW being the equivalent of 60% to two-thirds of median hourly earnings. The study found that even the most ambitious of policies did not have any substantial effect on employment but did mean that the earnings of low paid workers were significantly higher. There is a cautionary note to the review, however, which suggests that there should be procedures in place so that the Low Pay Commission (LPC) can recalculate the NLW in the event of unforeseen circumstances which could be counterproductive to increasing the NLW or if the increase to the NLW started to have any undesirable effects on wider
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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