National Minimum Wage Update
At Harvey Telford & Bates Chartered Accountants in Shrewsbury, we can provide complete Payroll support to clients; helping them to manage their obligations to employees including ensuring staff are paid the correct wages and contributions are managed such as National Insurance.
This includes monitoring the National Minimum Wage and providing the correct wage calculations for each employee and their status (over 25, Apprentice etc).
As of October 2016; the National Minimum Wage 2016 (NMW) increased, with the following rates now applicable:
- Adults between 21 – 24 year olds NMW increases to £6.95 per hour (previously £6.70);
- The Youth Development Rate for 18 – 20 year olds increases to £5.55 per hour (previously £5.30);
- 16-17 year old rate increases to £4.00 per hour (previously £3.87);
- Apprentice Rate increase to £3.40 per hour (previously £3.30).
The NMW will be reviewed again in April 2017, with new rates released for the beginning of the tax year.
It is important to note that the NMW is separate from the National Living Wage (NLW), which was introduced in April 2016.
The National Living Wage currently only applies to workers aged 25 and over. Replacing the NMW for over 25s, it was set at £7.20 in April 2016, and will be updated annually at the beginning of the new tax year.
The NLW currently recommended by Government is set by the Low Pay Commission, with the aim of reducing the number of staff on low wages in the UK and providing a wage that offers a good standard of living throughout the UK.
If you are an employer and would like to know more about the NMW, NLW, or your legal obligations, get in touch with our team today.
Our experts can provide guidance on what you need to do when setting up as an employer, as well as providing complete support from registering employees with HMRC through to the ongoing tasks such as Real Time Information reporting.
Harvey Telford & Bates Chartered Accountants also work with HR experts Peninsula Business, ensuring you have all the correct HR support to manage your team.
