![[UK] New National Minimum Wage entitlements and exceptions](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-London-Uk---June----Gr-317565571_1200x.jpg?v=1650383663)
The National Minimum Wage and National Living Wage rises are now in effect in the UK and, according to the Department for Business, Energy and Industrial Strategy, the change will impact around 2.5 million UK workers, The Irish News reports.
UK Chancellor Rushi Sunak confirmed in his October 2021 Budget that the National Living Wage would increase to £9.50 from April 1; meaning an extra £1,000 a year in the pay packet of a full-time worker.
Commenting on the increase at the time, the Chancellor said, “This is a government that is on the side of working people. This wage boost ensures we're making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament.”
The new rates are:
- National Living Wage (23 years old and over) - up 6.6 per cent from £8.91 to £9.50
- National Minimum Wage (21-22 years old) - up 9.8 per cent from £8.36 to £9.18
- National Minimum Wage (18-20 years old) - up 4.1 per cent from £6.56 to £6.83
- National Minimum Wage (16-17 years old) - up 4.1 per cent from £4.62 to £4.81
- National Minimum Wage (apprentice rate) - up 11.9 per cent from £4.30 to £4.81
- Accommodation Offset - up 4.1 per cent from £8.36 to £8.70
The National Minimum Wage (NMW) is the minimum hourly pay most workers are entitled to by law. The rate depends on a worker's age or if they are an apprentice.
The UK Government's National Living Wage (NLW) was introduced in April 2016 for all working people aged 23 and over.
A number of people are not entitled to the NMW/NLW. They are:
- Self-employed people
- Volunteers or voluntary workers
- Company directors
- Family members, or people living in the family home of the employer who undertake household tasks
All other workers including home workers, agency workers, commission workers, part-time workers and casual workers must receive at least the NMW.
It is against the law for employers to pay workers below the National Minimum Wage or to falsify payment records. A worker can make a complaint to HMRC who will investigate. If HMRC finds that an employer hasn't paid at a rate of at least the National Minimum Wage, it can send a notice of arrears and enforce a penalty for not paying the correct rate of pay to the worker.
Since the introduction of the National Living Wage, the penalty for non-payment is 200 per cent of the amount owed, unless the arrears are paid within 14 days. The maximum fine for non-payment is £20,000 per worker. Employers failing to pay will be banned from being a company director for up to 15 years.
Employers must ensure that they calculate the right rates to pay workers and must be aware that the government includes time spent:
- at work and required to be working
- not working because of a machine breakdown, but kept at the workplace
- waiting to collect goods, meet someone for work or start a job
- travelling in connection with work
- training or travelling to training
- at work and under certain work-related responsibilities
What's not included:
- travelling between home and work
- away from work on rest breaks, holidays, sick leave or maternity leave
- on industrial action
- not working but at the workplace or available for work.
A higher minimum wage can improve employee morale and productivity, which will consequently improve staff turnover rates.
Paying a higher salary also has a positive impact on brand reputation, helping companies attract professionals looking for long-term business relationships.
Source: The Irish News
(Quote via original reporting)
The National Minimum Wage and National Living Wage rises are now in effect in the UK and, according to the Department for Business, Energy and Industrial Strategy, the change will impact around 2.5 million UK workers, The Irish News reports.
UK Chancellor Rushi Sunak confirmed in his October 2021 Budget that the National Living Wage would increase to £9.50 from April 1; meaning an extra £1,000 a year in the pay packet of a full-time worker.
Commenting on the increase at the time, the Chancellor said, “This is a government that is on the side of working people. This wage boost ensures we're making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament.”
The new rates are:
- National Living Wage (23 years old and over) - up 6.6 per cent from £8.91 to £9.50
- National Minimum Wage (21-22 years old) - up 9.8 per cent from £8.36 to £9.18
- National Minimum Wage (18-20 years old) - up 4.1 per cent from £6.56 to £6.83
- National Minimum Wage (16-17 years old) - up 4.1 per cent from £4.62 to £4.81
- National Minimum Wage (apprentice rate) - up 11.9 per cent from £4.30 to £4.81
- Accommodation Offset - up 4.1 per cent from £8.36 to £8.70
The National Minimum Wage (NMW) is the minimum hourly pay most workers are entitled to by law. The rate depends on a worker's age or if they are an apprentice.
The UK Government's National Living Wage (NLW) was introduced in April 2016 for all working people aged 23 and over.
A number of people are not entitled to the NMW/NLW. They are:
- Self-employed people
- Volunteers or voluntary workers
- Company directors
- Family members, or people living in the family home of the employer who undertake household tasks
All other workers including home workers, agency workers, commission workers, part-time workers and casual workers must receive at least the NMW.
It is against the law for employers to pay workers below the National Minimum Wage or to falsify payment records. A worker can make a complaint to HMRC who will investigate. If HMRC finds that an employer hasn't paid at a rate of at least the National Minimum Wage, it can send a notice of arrears and enforce a penalty for not paying the correct rate of pay to the worker.
Since the introduction of the National Living Wage, the penalty for non-payment is 200 per cent of the amount owed, unless the arrears are paid within 14 days. The maximum fine for non-payment is £20,000 per worker. Employers failing to pay will be banned from being a company director for up to 15 years.
Employers must ensure that they calculate the right rates to pay workers and must be aware that the government includes time spent:
- at work and required to be working
- not working because of a machine breakdown, but kept at the workplace
- waiting to collect goods, meet someone for work or start a job
- travelling in connection with work
- training or travelling to training
- at work and under certain work-related responsibilities
What's not included:
- travelling between home and work
- away from work on rest breaks, holidays, sick leave or maternity leave
- on industrial action
- not working but at the workplace or available for work.
A higher minimum wage can improve employee morale and productivity, which will consequently improve staff turnover rates.
Paying a higher salary also has a positive impact on brand reputation, helping companies attract professionals looking for long-term business relationships.
Source: The Irish News
(Quote via original reporting)