The national minimum wage (NMW) applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall.
It is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace. The Government suggests that it helps business by ensuring companies compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay.
The rates set are based on the recommendations of the independent Low Pay Commission. The rates change on 1st October each year.
New National Minimum Wage rates from 1 October 2015
- the adult rate will increase by 20 pence to £6.70 per hour
- the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
- the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
- the apprentice rate will increase by 57 pence to £3.30 per hour
- the accommodation offset increases from the current £5.08 to £5.35
For details of the current rates visit: https://www.gov.uk/national-minimum-wage-rates
New Apprentice Rate
A new apprentice rate of £2.73 per hour was introduced for pay reference periods starting on or after 1 October 2014. This applies to apprentices who are workers, and aged either under 19 or aged 19 and over, and in the first year of their apprenticeship. The rate will increase by 57 pence to £3.30 per hour.
Introduction of National Living Wage
A new National Living Wage (NLW) will be introduced from April 2016. This will start at £7.20 an hour with a rise to £9 an hour by 2020. The NLW will be compulsory for all working people aged 25 and over.
Some of the PSC ladies will be attempting the Cambridge 5K Race For Life in July 2018!
As in previous years, PSC can process your P11D forms on your behalf.
Since the inception of Auto Enrolment (AE) legislation, PSC has assisted hundreds of clients through the staging process to ensure they comply with these complex obligations.
Year End Matters and Main Legislative Changes.
The National Minimum Wage (NMW) applies to nearly all workers and sets hourly rates which pay must not be allowed to fall below.
From April 2016, the Government's new National Living Wage (NLW) is now law and obligates employers to pay employees aged 25 and over at least £7.20 per hour.
A summary of the main legislative changes that take place for 2016/2017.
PSC are pleased to announce that we shall be attending the Cambridge B2B Exhibition hosted by Cambridgeshire Chamber of Commerce again this year, for the third time running. It will be held at Cambridge Quy Mill Hotel and Spa on Thursday 24th September 10am-4pm.
HMRC have recently published their latest Employer Bulletin so PSC has summarised the main points that may affect payroll.