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Accountants in Medway - Sinden Thackeray Partnership

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NMW increases take effect

Newsletter issue - November 2016.

New rates for the National Minimum Wage (NMW) took effect from 1 October 2016, and employers must ensure that they implement them accordingly. The rates are as follows:

  • 25 and over - £7.20 per hour;
  • 21- to 24-year-olds - £6.95 an hour;
  • 18- to 20-year-olds - £5.55 an hour;
  • 16- to 17-year-olds £4.00 an hour; and
  • Apprentice rate - £3.40 an hour.

The increased NMW penalty took effect from 1 April 2016 and applies to any notice of underpayment relating to a pay reference period beginning on or after that date. Broadly, the penalty percentage which may be imposed for non-compliance has been increased from 100% to 200%. The maximum penalty is a hefty £20,000 per worker, although it may be reduced by 50% if the unpaid wages and the penalty are paid within 14 days.

For further information on the NMW, see the GOV.UK website at https://www.gov.uk/national-minimum-wage-rates.

 


Christopher Kember FMAAT is licensed and regulated by AAT under licence number 7213. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Sinden Thackeray Partnership is supervised by AAT in this respect.