The national minimum wage is set to increase from April 2018.
Becoming increasingly complex; there are five different rates to be aware of:
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Workers aged 25: £7.83 per hour
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Workers aged 21 and over: £7.38
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Development rate aged 18-20: £5.90
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Young workers aged 16-17: £4.20
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Apprentices under 19, or over 19 & in year one of apprenticeship: £3.70
With over 25s receiving an additional £600 annually (for full time workers), this is likely to impact SMEs’ bottom line, particularly considering other salary-related benefits such as pensions contributions.
Noting that HMRC are increasingly looking out for minimum wage underpayments, our advice to you is to two-fold:
* Be sure your budget planning incorporates these increases
* Be sure that you are correctly increasing pay to ensure that each member of your team is receiving their legal entitlement.
Paying the right amount to your team is hugely important and can impact on recruitment and retention. Getting it right can save you both money and time.