The Chancellor has recently announced that as of April 2024 the National Minimum wage for over 23's in the UK will be at least £11 per hour. This increase is set to benefit over 2 million workers on low wages in the UK. Currently set at £10.42, this increase follows an almost 10% increase that was put in place as of April 2023. Having a National Minimum Wage rate of over £11 per hour would represent an increase that is above the current rate of inflation. According to the BBC, this increase would mean the annual earnings of someone who is full-time on the current National Minimum Wage will increase by £1,000.
Do you have to pay the National Minimum Wage?
It's illegal for employers not to pay employees at least the National Minimum Wage in the UK. Employees can take Employers to the Employment Tribunal if they are not paid correctly or make a complaint to HMRC. Rates are different based on age and whether you're employing Apprentices. If you don't pay the minimum wage you could be liable for fines and any awards given if the case is taken to an Employment Tribunal. In 2023 alone companies like Argos, WHSmith and Marks & Spencer were ordered to pay nearly £7 million to employees who didn't receive the National Minimum Wage. There's more information on what happens when people are not paid the National Minimum Wage here; https://www.acas.org.uk/national-minimum-wage-entitlement/if-an-employer-does-not-pay-minimum-wage#:~:text=If%20an%20employee%20or%20worker,type%20of%20claim%20they%20make.
What is the current National Minimum Wage?
You can see more on the current National Minimum Wage rates here; https://www.gov.uk/national-minimum-wage-rates
Who doesn't get the National Minimum Wage?
Everyone isn't entitled to the National Minimum Wage, it doesn't apply to;
the self-employed
company directors
volunteers
members of the armed forces
people living and working in a religious community
Prisoners receive a lower rate of pay for the work that they do.
Who sets the National Minimum Wage?
The independent Low Pay Commission (LPC) produces recommendations each November on what the minimum wage rates should be the following April. The government then reviews the figures and decides on what the change to the minimum earning rates should be. Increases to the National Minimum Wage happen annually every April.
What is the Real Living Wage?
This is a voluntary wage set by the Real Living Foundation charity that organisations can choose to pay to their staff. There are currently over 13,000 employers paying the Real Living Wage in the UK.
Where can I find more information?
Here are some resources that you might find useful;
Would you like to see if your HR is up to scratch? Take our free quiz.
Our quiz aims to give you some insight into how you're managing your HR practices and provide you with some free tips and pointers on what you can do to make your HR practices even better! After taking our quick quiz, you'll receive a personalised insights email to help you take action and supercharge your HR!
I want some HR Help from Tap HR ✅
We support your business with getting its HR foundations right, without stopping you from doing what you love. Get in contact for more details!
How do I get in contact?
Feel free to email us or book a free consultation.
Follow us on our social media platforms!
Disclaimer
All information within the post is provided for guidance only; always seek your own legal advice.
The information with this post was correct at the time of publishing, October 2023 but may be subject to change.