National Minimum Wage set to rise by its highest rate since 2016

The National Minimum Wage, also known as National Living Wage (NLW), rates are increasing by 6.2% from 1 April 2020. With the Government confirming that this is the ‘biggest cash increase’ since the NLW was introduced in 2016, employers need to ensure they are paying their employees at least the appropriate rate. You can find the new rates in the table below;

*for apprentices under 19 or 19 or over and in the first year of their apprenticeship

You can now calculate if the correct minimum wage has been applied by using the GOV calculators for workers and for employers.

What are the penalties for non-compliance?

It is important to adhere to the new rates as the penalties imposed on employers that are in breach of the minimum wage legislation are 200% of arrears owed to workers, with the maximum penalty of £20,000 per worker. However, the penalty is reduced by 50% if the unpaid wages and the penalty are both paid within 14 days. HMRC will also name and shame employers who are penalised which could amount to untold reputational damages.

We have a dedicated payroll team, who operate as part of our EQ Accounting department, supporting our clients in dealing with the everyday issues associated with employing staff. By outsourcing your payroll function, we can take away the burden, allowing you to focus on the day-to-day running of your business.

For more information or for support with any payroll query, or to discuss outsourcing your payroll function, please contact our EQ Accounting team today on info@eqaccounting.co.uk or call 01382 312140.