Employment Facts and Stats
National Minimum Wage Summer 2014
The National Minimum Wage (NMW) rate is dependent on age and whether your employee is an apprentice. To qualify for the National Minimum Wage a person must be school leaving age.
Please note that whether a person is considered school leaving age or not will be dependent on exactly when in the year they were born. It is always best to check.
The NMW is usually updated every October.
The rates below were updated in October 2013 and currently apply. The rates will however increase in October 2014, for example the over 21 has already been reported to increase to £6.50. We will publish the new rates in our Autumn/Winter update if you would like us to send you a copy either register on any of the pages within our HR Newsroom or simply e-mail me at email@example.com
Current NWM rates
|21 & over||18-20||Under 18||Apprentice*|
*Important note: the apprentice rate is for those who are 16-18, and those who are 19 or over, but who are in their first year. Otherwise the apprentice would be entitled to the NMW for their age.
The Government considers there is still widespread abuse by some employers not paying the NMW. This is despite widespread knowledge of the NMW obligations on all employers (regardless of their size).
In response, any person found guilty of not paying the NMW is served a notice. The notice will state the arrears of NMW to be paid and, a financial penalty to be paid to the Secretary of State. This must be paid within 28 days.
The financial penalty is 100% of the total NMW underpayment and subject to a minimum £100 and a maximum £20,000 penalty. Penalties will be reduced by 50% if complied with within 14 days.
Important law change. Within the recent Small Business, Enterprise and Employment Bill (25th June 2014), the maximum penalty of £20,000 will now apply on a ‘per worker’ basis rather than per employer basis.
This could escalate to an amount that could quite simply put a small business out of business. A very high risk strategy for any business to take.
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Senior HR Consultant and Trainer
HR Support for Business
Tel: 078994 25916/ 079412 62492 /01295 788 579 firstname.lastname@example.org