The National Minimum Wage - Payroll Information from [[Your name here]]
Employers are obliged to pay their workers a minimum hourly rate of pay, known as the National Minimum Wage (NMW). The rate of the National Minimum Wage is defined by law, and applies to most workers in the UK over school leaving age, with certain exceptions, including:
- Self-employed individuals
- Directors of companies who do not have an employment contract
- Voluntary workers
- Children of compulsory school age
- Family members of the employer living in the employer's home
Separate rates of pay apply to agricultural workers.
The NMW rate is reviewed on an annual basis, and the updated rates are published each October. There are different rates of National Minimum Wage that apply to different groups of workers, as follows:
- The main rate for workers aged 21 and over
- The 18-20 year old rate
- The 16-17 year old rate
- The apprentice rate for apprentices under 19, or in the first year of their apprenticeship
The rules are complex, but generally speaking benefits in kind, expenses, certain allowances and most deductions are not included when calculating the National Minimum Wage. Job-related travelling and training time is included in the calculation, but periods of holiday or absence, rest breaks or industrial action do not count.
For workers who are not paid according to the number of hours they are at work, special rules apply.
Employers must keep records to demonstrate payment of the National Minimum Wage. All records have to be kept for 3 years.
Qualifying individuals who are not paid the National Minimum Wage are entitled to apply to a court or tribunal, and are protected against any loss suffered. Employers who fail to pay the NMW are liable to financial penalties, and may be convicted of a criminal offence.
We can advise you on the latest NMW rates. For expert assistance with your payroll needs in Dartford, contact [[Your name here]] today.