The National Minimum Wage is increasing again, with the new rates taking effect from 1 April 2017 instead of October.
This is the second compulsory pay rise in just over six months for some younger employees. All future increases in the national minimum wage and living wage will take effect from 1 April each year.
It is important to identify which workers should receive which level of National Minimum Wage and how the amount per hour should be calculated. Some employers have fallen foul of the rules when their staff worked unpaid overtime. Every worked hour must be counted for National Minimum Wage calculations.
Any underpayment of National Minimum Wage can incur a penalty of up to 200% of the underpaid amount, up to £20,000 per worker, with a minimum penalty of £100 per worker.
Businesses can be publicly named by HMRC if the amount due exceeds £100.
For pay periods starting after 1 April 2017 the hourly rates are:
25 &over (living wage)
21 to 24
18 to 20