The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
The rate for 21-24 year olds of the National Minimum Wage is increased from £6.95 to £7.05. The development rate (18-20 year olds) which covers workers aged 18-20 years old is increased from £5.55 to £5.60. The rate for 16-17 year olds is increased from £4.00 to £4.05. The apprentice rate (for apprentices aged under 19 or in the first year of their Apprenticeship) should increase from £3.40 to £3.50.
The LPC also recommended that the accommodation offset increases from the current £6.00 to £6.40 (from £42.00 to £44.80 a week) from 1 April 2017. This too was accepted by the government.
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Top ten excuses for not paying staff the National Minimum Wage 12 January 2017
According to one employer, “It’s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth’ first.”
Ten of the most bizarre excuses used by unscrupulous bosses found to have underpaid workers the National Minimum Wage have been published by the government. The list coincides with a new awareness campaign to encourage workers to check their pay to ensure they are receiving at least the statutory minimum ahead of the national minimum and national living wages rising on 1 April 2017. The £1.7 million campaign aims to make sure workers are being paid at least the National Minimum Wage, or National Living Wage, depending on their age, and is part of the government’s commitment to making sure the economy works for all.
Investigators from HMRC have revealed some of the worst excuses given to them by employers caught out for underpaying staff, which include:
1. The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage. 2. It’s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth’ first. 3. I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it. 4. She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors. 5. I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and they even signed a contract to this effect. 6. My accountant and I speak a different language – he doesn’t understand me and that’s why he doesn’t pay my workers the correct wages. 7. My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves. 8. My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone. 9. My employee is still learning so they aren’t entitled to the National Minimum Wage. 10. The National Minimum Wage doesn’t apply to my business.
By law, all workers must be paid at least £7.20 an hour if they are aged 25 years and over, or the National Minimum Wage rate relevant to their age if they are younger.
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National Minimum Wage and National Living Wage 20 January 2017
Employers are facing a second increase in minimum wage rates come 1 April 2017.
The National Minimum Wage - The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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