The new minimum wage rates came into force from 1 st October 2016. In light of the subsequent Autumn statement and the forecasts of the Office for Budget Responsibility on wage stagnation, we take a brief look on what they are, how they affect young people and how employers can comply with legislation.
|Age Group||Wage (£ per hour)|
|16-17 year olds||4.00|
|18-20 year olds||5.55|
|21-24 year olds||6.95|
The above rates are applicable to trainees, apprentices, foreign workers and agricultural workers. It is a criminal offence not to pay workers less than the minimum wage. HMRC has the right to carry out a check on any employer not complying with their obligations, as well as imposing a fine on the offenders.
Voluntary Living Wage
This is separate from the UK Voluntary Living Wage requirements, whose obligations are not mandatory to follow but discretionary. The current rate for the Voluntary Living Wage for all those who are age 25 and above is currently £8.20 per hour, but will rise to £8.45 per hour.
Have you been paying your employees, including your apprentices, the lawful rate? It is imperative that employees have contracts of employment, particulars and are paid lawfully.
If you have any queries regarding the new minimum wage rates, or to arrange a review of your employment practice, please contact our Employment specialist John Porter on 0161 624 6811 or email email@example.com.
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