National Minimum Wage Changes

THE NATIONAL MINIMUM WAGE is set to rise from 1 April 2020 and all age bands will receive increased rates of pay.

The apprentice rate, which apprentices receive if they are under 19 or in their first year, is to increase from £3.90 to £4.15 per hour.

NMW 2020 Changes

HMRC is offering live webinars in March to explain the rate rises and the most common mistakes employers make.

Information on webinars and how to sign up can be found here.

Enforcement update

The change in the minimum wage is also accompanied by a change in enforcement.

From 6 April 2020, UK government policy is to name and shame any employer owing more than £500 in arrears for paying below the minimum wage.

The underpayment threshold resulting in being named and shamed was previously set at £100.

However from April, any business that underpays by less than £100 will have the chance to correct their mistake without being named, provided they pay back workers, although they may face fines of up to 200% of the arrears in addition.

Business Minister Kelly Tolhurst said, ”Anyone who is entitled to the minimum wage should receive it – no ifs, no buts – and we’re cracking down on companies that underpay their workers.

“We also want to make it as easy as possible for employers, especially small businesses and those trying to do right by their staff, to comply with the NMW rules, which is why we’re reforming regulations.”