National Minimum Wage increase
From the 1st October this year the following changes will be in place:
£6.50 for workers 21 and over
£5.13 for workers 18-20 years
£3.79 for 16-17 years olds
£2.73 for apprentices under 19 or 19 and over who are in the first year of apprenticeship
What action do you need to take?
Get payroll to check that the hourly rate per employee is over the national minimum wage. Some of your lower paid workers may now be just under the threshold. Particularly check staff with low annual salaries.
This doesn’t mean you have to pay it as of 1 October.
If your payroll runs from mid-month to mid-month, you only have to pay it in the next payroll.
“This is madness”, I hear you say. “If I pay on the 28th and finalise payroll and start again using the 29th as my next date, does that mean I don’t have to pay the increase until the 29th October?”
Strange as it seems, yes. You only have to pay the increase from the nearest payroll that starts after the 1st October. Most companies use the calendar month – if that is the case, you will need to pay the new rate effective 1st October.
