Janette Whitney & Associates, Business Consultants

Minimum Wage

From 1st october 2011, new National Minimum Wage (NMW) rates will come into force. The NMW applies to nearly all workers in England, Scotland & Wales and sets hourly rates below which you must not allow pay to fall.

For pay reference periods beginning on or after 1st October 2011, you will have to pay all eligible workers the following:

• £6.08 an hour to Adult workers aged 21 and above
• £4.98 an hour to workers aged 18-20
• £3.68 an hour to workers aged 16-17
• £2.60 an hour to Apprentices

The daily accomodation offset.

You will be able to offset from the NMW an amount of £4.73 per day for each day that you provide a worker with living accomodation.

What happens if workers are underpaid?

Employers who do not pay the correct minimum wage will be issued with an fine of up to max £5000. You will have to pay this even if the underpayment was a mistake !

The most serious cases could be subject to an unlimited fine.

HM Revenue & Customs (HMRC) are responsible for enforcing the law on the national minimum wage and they will follow up complaints from workers and other sources.

For professional & impartial Business advice contact Janette Whitney at Award Winning Business Consultants, Janette Whitney & Associates on 01403 733671 or email jw@whitneyassocs.co.uk

Filed under: Finance & Cashflow | Tagged: Business advice, Business planning, business support, Employment, finance, MINIMUM WAGE, National Minimum wage, small business advice |