Are you paying the National Minimum Wage?
Look out for changes to the National Minimum Wage from October 1st. The rate for adults rises by just over 3%.
For most employers this will have little effect as employees are paid more or substantially more than the minimum wage. And it seems on the surface, a pretty straight forward calculation – amount paid divided by numbers of hours worked.
But it can catch you out as an employer, particularly when you take on casual employees to achieve a specific task. For example you may agree a fixed amount, say £500 for an employee to lay a patio. You need to make sure that the rate you pay actually covers the average hours it takes to do the job.
Have a think about the way you decide to reward employees and make sure that you have methods in place to check that you are paying the minimum wage. If you’re not sure, have a look at the .GOV.UK website or ask your accountant or HR consultant for advice.
|Year||21 and over||18 to 20||Under 18||Apprentice*|
|2014 (from 1 October)||£6.50||£5.13||£3.79||£2.73|
|2013 (current rate)||£6.31||£5.03||£3.72||£2.68|
Here are the current and the new hourly rates so that you can check.