This change is important for both employers (and employees!) to be aware of. The rates change every April and these are the rates as of 1st April 2017:
|25 and over||£7.50|
|21 to 24||£7.05|
|18 to 20||£5.60|
For employers, failing to pay the new rates incurs a 200% penalty of the underpayment, which means employers risk fines of up to £20,000 per underpaid worker. So, if you employ anyone – make sure you’re familiar with the rates and be sure to action any changes that need to happen as soon as possible.
This blog gives an overview of the changes and answers the most common questions we get asked about this legislation by our clients and candidates.
Is a worker entitled to National Minimum Wage when on-call?
Not ordinarily. However if a worker is required to remain at or near their workplace and be available to work, this is classed as working time and they should be paid as a result.
Is a worker entitled to National Minimum Wage for travel time during work hours?
Yes, employers have to pay workers for time spent travelling in connection to their job, so travel in working hours should be paid in full. What isn’t included is travel between home and the place of work.
Do I need to pay an employee for the time they spend training?
Yes, all time employees spend in training must be paid in full as this is work undertaken as part of employment.
I am working as a temp through an agency, who is responsible for paying me the National Minimum Wage? The agency’s client – that is the company you are temping for, may set your hours and conditions, but it is the agency supplying them that is responsible for ensuring you receive the National Minimum Wage.
Need more information?
The best place to go for additional advice is the government website. You’ll find everything about the National Minimum Wage increase, how to check you’re paying enough and what to do if you’re not.