Effective from 1 April 2020
Here’s what you will need to pay your staff as a minimum:
|National Minimum & Living Wage Rates||Per hour|
|25 yrs and over||£8.72 (up 6.2%)|
|21 to 24 yrs||£8.20 (up 6.5%)|
|18 to 20 yrs||£6.45 (up 4.9%)|
|Under 18 yrs||£4.55 (up 4.6%)|
|Apprentice||£4.15 (up 6.4%)|
You can check you’re paying the right amount by using Minimum Wage Calculator.
“It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records”.
More about the National Minimum Wage and National Living Wage.
Anyone can report an employer to HMRC for not paying the correct minimum wage.
If HMRC finds that an employer has not paid at least the minimum wage, they can send a notice of arrears plus issue a penalty for not paying the correct rate of pay.
HMRC can also take employers to civil court for not paying the National Minimum Wage or National Living Wage. The maximum fine for non-payment is £20,000 per worker. Employers who fail to pay can be named publicly and banned from being a company director for up to 15 years.
Voluntary Living Wage
Above is the statutory minimum wage rates that must be paid to each employee which is not to be confused with the voluntary real living wage rate as recommended by the Living Wage Foundation which is higher than the government minimum. If you would like to know more about how to become a real living wage employer then visit: https://www.livingwage.org.uk/become-a-living-wage-employer