Are you getting minimum wage payments right?

HR, News, Payroll,

The Government recently ‘named and shamed’ 524 businesses for failing to pay the minimum wage to their staff.

These failures amounted to a total of nearly £16 million that had not been paid to over 172,000 workers. Each of the employers named has had to pay their staff the shortfall and have also faced financial penalties of up to 200% of the underpayment.

The list includes businesses of all sizes, including some major high street brands, including Estee Lauder, Easyjet, Greggs, Roadchef, River Island, Dobbies Garden Centres, Moss Bros, Currys, DHL, Wickes Building Supplies, and NHS Highland. 

Independent Commissioner at the Low Pay Commission, Patricia Rice, said: ‘Since its introduction nearly twenty-five years ago, the national minimum wage has played a vital role in protecting the earnings of the lowest-paid workers in the UK.  At a time when the cost-of-living is rising, it is more important than ever that these workers receive the pay to which they are entitled.

National Minimum Wage underpayment not only cheats workers of their rightful due, it leaves compliant firms undercut by those who do not abide by the law. By naming the firms responsible for significant underpayment, we raise awareness of the nature and the scale of underpayment and encourage all employers to ensure that they fully comply with the law.’

It can be easy to unintentionally underpay a worker, such as when they hit 18 or 21 when there is a mandatory increase, making it a good idea to regularly review your payment rates.

This is especially important as the rates of pay are increasing from the 6th April 2024, as set out in the table below.

 2023/24 rate2024/25 rate
National Living Wage 21 and over (previously 23 and over)£10.42£11.44
18 to 20£7.49£8.60
Under 18£5.28£6.40
Accommodation Offset£9.10£9.99

If you need help with minimum wage calculations or your payroll, or would just prefer to outsource its preparation, please get in touch. Although we don’t process payrolls, preferring instead to concentrate on areas through which we can provide more value, we can put you in touch with a suitable bureau to take care of it on your behalf and ensure you don’t get caught out.

You can see the full list of employers that were penalised for minimum wage failures here.

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