The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. NMW rates increases come into effect on 1 October 2014:
- the main rate for workers aged 21 and over will increase to £6.50 (currently £6.31)
- the 18-20 rate will increase to £5.13 from £5.03
- the 16-17 rate for workers above school leaving age but under 18 will increase to £3.79 from £3.72
- the apprentice rate will increase from £2.68 to £2.73 per hour.
It is important to note that these rates, which are in force from 1 October 2014, apply to pay reference periods beginning on or after that date.
Penalties
Penalties may be levied on employers where HMRC believe underpayments have occurred and HMRC now have the power to 'name and shame' non-compliant employers.
Most workers in the UK over school leaving age are entitled to be paid at least the NMW for details of exceptions see the Acas website.
If you have any queries on the NMW please do get in touch.
Internet link: Acas