Are you ready for the minimum wage increase?
Posted on in Business News , Political News
UK business owners are being urged to prepare for the changes to the national minimum wage from 1st October 2014.
With just three weeks until the new rates come into force it's important your business knows exactly what you should be paying your employees and takes the steps to put this into action.
In the first real-terms cash increase since 2008, the minimum wage for workers over 21 is set to rise to £6.50. Rates for 18-20 year olds, under-18s and apprentices are set to go up to £5.13 an hour, £3.79 an hour and £2.73 an hour respectively at the same time.
The NMW rates from 1 October 2014 will be:
- a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
- a 10p (2%) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
- a 7p (2%) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
- a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)
Businesses are being warned to prepare for the changes ahead of the deadline or risk facing penalties that could have a severe impact on their business.
The Government has confirmed it will ‘name and shame' employers that miss the deadline and continue to pay below the new national minimum wage.
More severe penalties will be dished out to persistent underpayers, including a fine of up to £20,000 per worker; a significant increase on the previous fine of £5,000.