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September 2011

National Minimum Wage rates from October 2011

A few changes on the horizon from 1st October 2011

National Minimum Wage Rates

The Department for Business, Innovation and Skills has announced the national minimum wage rates from 1 October 2011:

  • the adult rate will increase by 15p to £6.08 an hour
  • the rate for 18-20 year olds will increase by 6p to £4.98 an hour
  • the rate for 16-17 year olds will increase by 4p to £3.68 an hour
  • the rate for apprentices will increase by 10p to £2.60 an hour

 

Who's entitled to the national minimum wage?

Almost all workers who work in theUKare entitled to the national minimum wage. But there are some groups who aren't entitled, including:

  • self-employed people
  • children who are still of compulsory school age
  • company directors unless they also have contracts that make them workers

 

It makes no difference to a worker's entitlement to the national minimum wage whether they work for you full time or part time, or whether they are an agency worker, a temporary or casual worker, a piece worker or a home worker.

Enforcement and penalties

HMRC enforces the national minimum wage.

If HMRC finds an employer to have underpaid the national minimum wage it will issue a notice of underpayment. This will show the arrears the employer must pay to their workers and the penalty the employer must pay to HMRC.

The penalty is 50 per cent of the total underpayment that has occurred from 6 April 2009. This figure will be shown separately on the notice of underpayment. There is a minimum penalty of £100 and a maximum of £5,000. If an employer pays the arrears and the penalty within 14 days of the date on which the notice of underpayment is served, they only need to pay half of the penalty.

Any questions please contact Kerrie Lucas our Payroll Manager