Don’t get caught out, the National Minimum Wage increased this month

5 April, 2017

The National Minimum Wage (NMW) has increased for all workers operating in the UK this month (April 2017).

For workers over the age of 25, this means that wages will rise from £7.20 to £7.50 per hour.

Workers aged 21 – 24 will see their hourly wage rise by 10p to £7.05, those aged 18 – 20 will receive a pay rise of 5p to £5.60 per hour, and under 18s will get 5p more to £4.05.

Apprentices will also see their rates rise by 10p from £3.40 to £3.50 per hour.

The Government said it will follow through with promises to raise the NMW for over 25s to £9 by 2020.

Failure to pay workers the NMW can result in significant penalties.

Last month, Tesco were forced to reimburse its employees more than £9.7 million for paying them below the NMW. The retail giant cited errors in its payroll system for workers who paid into workplace pension schemes – a mistake easily made.

At the time, Margot James, business minister, said: “We expose companies who fail to pay workers at least the minimum wage, but where there has been underpayment it is preferable that companies identify, and correct, that underpayment themselves.

“It is completely unacceptable for any worker to be underpaid and everybody should check their pay ahead of the national minimum and living wages rising on 1 April.”

Employers who discover they’ve paid a worker below the correct minimum wage must pay any arrears immediately.

At Watson Buckle, our payroll team can manage all of the necessary changes to your payroll so that your employees’ pay is correctly adjusted. We can also offer advice and support relating to all aspects of auto-enrolment. For more information about our payroll services, please contact us.