The annual National Minimum Wage adjustments will be moved to April from this year, and so there will no longer be a change in October. The rates have been released and further details are as below:
|Worker Category||Old Rate||New Rate from April 2017||% Change|
|National Living Wage
(Aged 25 or over)
|Aged 21 – 24||£6.95||£7.05||1%|
|Aged 18 – 20||£5.55||£5.60||1%|
|Aged 16 – 17||£4.00||£4.05||1%|
Most workers will be eligible for the minimum wage and further guidance is available on the HMRC or ACAS websites. There are some workers that are not eligible for minimum wage, but it is a criminal offence not to pay an employee the National Minimum Wage or National Living Wage if they are eligible.
The minimum wage rates must be paid for hours worked in the corresponding pay period, so it may be possible that some hours will be paid at the old rate for payrolls with a pay day in April. HMRC guidance refers to pay reference periods, which should not be longer than 31 days and will depend upon the pay frequency.
If you have any questions about the upcoming changes please contact us.