Be prepared, the National Minimum Wage rises on October 1st 2016
As of 1st October 2016 the National Minimum Wage rates for apprentices and different age bands will increase. Last year HMRC investigated more than 70,000 employers and identified £10.3m in arrears for workers. Don’t be one of them.
So, how do I avoid being in arrears?
After recommendations from the Low Pay Commission the Government has adjusted the rates of the minimum wage affecting workers under 25 and apprentices as of 1st October 2016. The new rates can be found below:
- The minimum wage for 21-24 year olds is now £6.95 an hour.
- The Youth Development Rate, affecting 18-20 year olds, is now £5.55 an hour.
- The 16-17 Year Old Rate is now £4.00 an hour.
- The Apprentice Rate has increased to £3.40 an hour.
For workers aged 25 and over, the Government is introducing the £7.20 National Living Wage.
The key focus for the recommendations from the Low Pay Commission is the position of 21-24 year olds as a consequence of the National Living Wage. Previously the adult rate was applicable to workers 21 and over.
Now I know the new National Minimum Wages, what do I do now?
The next step is to identify who within your organisation is eligible to receive the new rates of pay and adjust you payroll accordingly.
If Prime processes your payroll this will be reviewed in October and your Payroll adjusted accordingly.
Yet another change in Payroll legislation
Most businesses will agree that managing payroll and understanding the ever-changing legislation can be frustrating. Prime provides a complete payroll solution to take away as much or as little of this burden as you wish.
If you wish to discuss how Prime can simplify Payroll for you, call Kerrie Lucas, Senior Payroll Manager on 024 7651 8555 / 0121 711 2468.