NATIONAL MINIMUM WAGE (NMW)
New Rates From 1 April 2024
The Government has announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from April 2024. One major change is the National Living Wage rate that normally applies for those age 23 and over will now start at age 21 and over.
The rates which will apply from 1 April 2024 are as follows:
NMW Rate
21 & over £11.44
18-20 £8.60
16-17 £6.40
Apprentice Rate £6.40
Accommodation Offset £9.99
Are you Compliant with the NMW?
HMRC perform reviews to ensure employers are paying the NMW and the penalties for getting it wrong can be costly. They are now contacting employers based on geographical location and we are aware of checks happening within our local area. It is not as simple as just ensuring employees are receiving the current NMW based on their age, there are many other factors to consider. Below is a high level list of some of the scenarios when common mistakes occur: –
- Apprentices receiving the correct rate
- Do you have any interns or work experience
- Are you recording actual hours worked
- Are employees required to undertake mandatory training outside of work hours
- Employees performing sleep-in shifts
- Security checks pre/post shift
- Change of uniform/PPE pre/post shift
- Any employees undertake business travel
- Any salary sacrifice arrangements in place
- Are employees required to wear or provide any specific clothing/equipment that is not supplied
- Do you recover training costs from employees on leaving
- Do you recover admin costs from court orders
- Do you make any deductions via payroll for savings clubs/lottery
- Are you a workplace nursery and deducting childcare fees from employees
How can DSG Help?
If you are concerned you may be at risk of not paying the NMW and want assistance reviewing your processes, then please get in touch via your payroll contact.