National Minimum Wage/Living Wage
BEIS survey on recording the number of hours worked on payslips 4 April 2017
The Low Pay Commission has recommended that employers should include in their staff’s payslips the hours each worker is being paid for. The reasoning behind the recommendation is to increase transparency and information provided to workers about how their pay is calculated. Department for Business, Energy & Industrial Strategy (BEIS) is exploring the best way to implement this recommendation and has asked the CIPP to survey our members in order to understand whether this proposal will bring additional financial and administrative burdens. The survey will also aim to obtain a better estimate of the proposal’s business impacts and benefits. The survey is aimed at employers, payroll agents and software developers and will close on 28 April 2017. We know that this is a very busy time but hope that you will manage to spare the time to complete this important survey.
The Low Pay Commission made the recommendation in their Spring 2016 report.
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Minimum Wage increases on 1 April 2017 31 March 2017
The National Minimum Wage (NMW) and National Living Wage (NLW) both increase on 1 April 2017.
National Minimum Wage The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rates from 1 April 2017 are:
£7.05 per hour - 21-24 yrs old £5.60 per hour - 18-20 yrs old £4.05 per hour - 16-17 yrs old £3.50 for apprentices under 19 or, 19 or over who are in the first year of apprenticeship.
The National Living Wage The National Living Wage was introduced on 1 April 2016 for all working people aged 25 and over and on 1 April 2017 it will increase from £7.20 to £7.50 per hour. Low-paid workers urged to check pay HMRC and the Department for Business, Energy and Industrial Strategy (BEIS) are running a UK-wide campaign to encourage low-paid workers to check their pay to ensure they are getting the National Minimum Wage (NMW).
Employees can check their minimum wage rates here . They can also use an online calculator to identify what they are entitled to.
Workers who feel they are not getting paid the correct wage can also call the Acas helpline on 0300 123 1100. The line has a free translation service for more than 100 languages.
Financial penalty A reminder to employers that the government increased the penalties imposed on employers that underpay their workers in breach of the minimum wage legislation from 100% to 200% of arrears owed to workers. The increased National Minimum Wage penalty came into effect on 1 April 2016. The penalty applies to any notice of underpayment relating to a pay reference period beginning on or after 1 April 2016. The maximum penalty is £20,000 per worker. The revised penalty is calculated as 200% of the total underpayment for all of the workers specified in a Notice of Underpayment relating to pay reference periods that commence on or after 1 April 2016. Where this amount would be less than £100, the minimum penalty of £100 should still be applied. Where this amount would be more than £20,000, the maximum penalty of £20,000 per worker should be applied. The penalty is reduced by 50% if the unpaid wages are paid within 14 days.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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