Are you calculating your employees National Minimum Wage correctly?

15th September 2023

In June 2023, over 200 employers were named by the government for failing to pay their workers the minimum wage, these employers faced penalties of nearly £7 million.

HMRC have set up a Specialist Enforcement Team to check and ensure employers are paying their workers correctly. Currently they are using a new approach and focusing on geographical areas. If they are looking are your area there is a chance you could receive a letter from HMRC stating you are on their radar. This could be the first of 3 letters prompting you to check your workers pay, the second letter will offer you the option of a phone call and you do not want to receive the 3rd letter which will mean you are in trouble.

The following link will take you to the 18 point list of the common causes of minimum wage underpayment Calculating the minimum wage – A checklist for employers – Guidance – GOV.UK

It is worth remembering that the National Minimum Wage affects all workers not just hour workers. Have you calculated your salaried employees correctly to ensure they don’t fall short of the National Minimum Wage? It is worth noting that there are 52 weeks and 1 day (Monday-Friday working days) in the upcoming 2024-25 tax year, how are you going to account for that extra day?

A clear message from government is that no employer is exempt from paying their workers the statutory minimum wage.

If you would like further guidance on this topic, we would be happy to meet with you for a chat so please book a call with Caroline.

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