If you are starting a new business, or planning to expand an existing company, you need to be aware of the legislation surrounding the national minimum wage. Employing staff is always a complex process, but more issues will arise than necessary if you make simple errors or break minimum pay rate rules.
Local authorities and the Government have a tendency to name and shame offenders; you don’t want to end up on this list, as it will be hugely damaging for your business’ reputation. We’ve created this simple overview of current national rates, which are correct at the time of publication, but which are liable to change at the next Budget.
The minimum hourly rate of pay is dependent on the age of the person you are employing and whether they are an apprentice or not. You therefore need to make the necessary adjustments to your employee’s salary as the years go by or as their position changes.
You must be older than the school leaving age to qualify for the National Minimum Wage and 25 or over to qualify for the National Living Wage.
Current rates
These rates are the current rate for the National Living Wage and the National Minimum Wage.
| Year | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| 2019/20 | £8.21 | £7.70 | £5.60 | £4.35 | £3.90 |
Apprentices may be paid the apprentice rate of National Minimum Wage if they are either under 19, or over 19 and in the first year of their apprenticeship. Those over 19 who have completed a year of their apprenticeship are eligible for the National Minimum Wage for their age.
Payroll Support Salford
Complying with National Minimum Wage requirements is just one aspect of payroll calculation and there are many other things that need to be taken into consideration, such as overtime, PAYE, pensions, student loans and sick pay. Given how many things need to be tracked, it may be worthwhile for your business to outsource its payroll operations, especially if you don’t have the expertise in-house. It is generally low-cost and can help you manage the legislation more easily.
MCC Accountants would be more than happy to discuss your payroll service requirements. Please get in contact with our team of specialists on 0161 707 1500 to find out how we can assist you.
