– In amongst playing pranks on your nearest and dearest, 1st April 2016 also sees changes to the National Minimum Wage (NMW) and introduction of the National Living Wage (NLW) for employees aged 25 and over.
From 1st April 2016 the minimum rates of pay are
– Age 25+ – £7.20 per hour (the National Living Wage)
– 21-25 – £6.70 per hour
– 18-21 – £5.30 per hour
– <18 – £3.87 per hour
– Apprentices – £3.30 per hour
In addition to these changes, the penalty payable by employers who underpay is being increased from 100% to 200% of the underpayment due to each worker.
With more employers now offering salary sacrifice/salary exchange, it is vital that you ensure that these arrangements do not place an employee on below the NMW/NLW.
If you have any concerns or queries regarding the impact of these changes, please contact our team at Morrell Middleton on 01904 691141.