As we are all aware the national minimum wages are reviewed annually and on the 1st October 2013 the minimum wage was increased. New penalties are being put in place for any employer that is found to be underpaying their employees.
According to the BBC News, Business Secretary Vince Cable said “Paying anything less than this is unacceptable, illegal and will be punished by law. So we are bringing in tougher financial penalties to crack down on those who do not play by the rules. The message is clear – if you break the law, you will face action.”
It would be advisable for all employers’ to review their payroll immediately and ensure that the below minimum wage limits are being met.
The new national minimum wages are:
- Age 21 and above £6.31
- Age 18 to 20 inclusive £5.03
- Aged under 18 (but above compulsory school leaving age) £3.72
- Apprentices £2.68
Employers who fail to pay workers the national minimum wage face stiffer penalties under new rules coming into force next month. The maximum fine for anyone failing to pay the statutory level will increase from £5,000 to £20,000.
The full article on BBC News can be read here: http://www.bbc.co.uk/news/business-25743929
Further information regarding the National Minimum Wage is available. Give Business Garage a call or drop us a line if you would like any assistance getting your company up to date with these changes.