“Applying NMW protections for seafarers on domestic merchant shipping routes, including the offshore energy sector is of course a modest success in the context of the ‘low cost’ crewing model on international routes but it will bring an estimated 13,000 Ratings of all nationalities working in the UK shipping industry into scope of UK employment law.”
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HMRC webinars: National Minimum Wage 22 October 2020
In recognition of the fact that wages can be complicated, and that different pay elements have varying effects on the National Minimum Wage (NMW), HMRC is running two live webinars on the topic to support employers, and to help them to ensure they comply with NMW rules. A lack of understanding of what can and cannot be included in calculations for the purpose of NMW can frequently lead to underpayments. Employers may believe that they are complying, but regularly aren’t adhering to the rules due to misunderstandings of this nature.
The table below shows the current NMW rates and National Living Wage (NLW) rate:
The NMW rates are ordinarily announced at Budget, but as the Autumn Budget has been postponed, there is no indication of when the rates for use from April 2021 will be published. As soon as any detail is provided, the CIPP’s Policy and research team will notify payroll professionals via News Online and social media.
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National Living Wage and National Minimum Wage rates to increase from April 2021 26 November 2020 As part of the Spending Review 2020, Chancellor of the Exchequer, Rishi Sunak, announced that, as per the Low Pay Commission’s (LPC) recommendations, which were made at the end of October 2020, the National Living Wage (NLW) and National Minimum Wage (NMW) rates will increase from April 1 2021. The new NLW will be £8.91 per hour, which is an increase of 2.2% from the current rate of £8.72 per hour. This will also be extended so that anyone aged 23 and above will be eligible for this rate of pay, as opposed to how it is currently applied, to those aged 25 and over. New NMW rates will also apply but for workers aged under 23, there have been smaller increases because there are risks to youth employment due to the current economic situation. In providing the recommendations, commissioners confirmed that they have no reason to believe that the scheduled increases pose any significant additional risk to employment prospects, outside of the already challenging outlook.
Chair of the LPC, Bryan Sanderson, said:
“Recommending minimum wage rates in the midst of an economic crisis coupled with a pandemic is a formidable task. The difficulty in looking forward even to next April is daunting. There are strong arguments concerning both low-paid
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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