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Rise in the National Minimum Wage

115 companies were recently “named and shamed” by the UK government for failing to pay their staff the national minimum wage.

Although all the attention is on companies, you must pay the current rate of the national minimum wage even if you only employ one member of domestic or household staff.

The emphasis on the current rate is a reminder that the rates for the national minimum wage change each year, usually in October.  You may have ensured that you are paying more than the current minimum wage now, but you could fall foul of the regulations at a later date.

As an employer, you must keep abreast of changes and alter your payments accordingly.

For those who may be unsure of the current rates, we have listed them below.  From 1 October 2015:

  • the adult rate was increased by 20 pence to £6.70 per hour
  • the rate for 18 to 20 year olds was increased by 17 pence to £5.30 per hour
  • the rate for 16 to 17 year olds increased by 8 pence to £3.87 per hour
  • the apprentice rate increased by 57 pence to £3.30 per hour
  • the accommodation offset increased from £5.08 to £5.35.

This is the largest increase in real terms in the National Minimum Wage since 2007, with more than 1.4 million of Britain’s lowest-paid workers benefiting from the increase.

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