Be Aware Of Minimum Wage Increases from 1 April 2018

Payroll Services BirminghamThere are new rates of pay for national minimum wage coming into force on 1st April.  These new rates are applicable from 1 April 2018 to 31st March 2019.  In any given pay period a worker’s pay must not fall below the National Minimum Wage rate.

So if you employ people:

Aged 25+ the new rate will be £7.83

21 – 24 year olds the new rate will be £7.38

18 – 20 year olds the new rate will be £5.90

16 and 17 year olds the new rate will be £4.20

Apprentices – the new rate will be £3.70

At All Payrolls we are experts and used to dealing with payroll all the time.  In our experience there are some common payroll related errors that can be avoided, which we are pleased to share here, such as:

  • Failing to apply the correct rate of pay for apprentices in their second year
  • Unpaid working time – so not paying people for all the hours worked and not including time spent travelling between work assignments or during training
  • Including tips and cover charges, you cannot count these as part of minimum wage calculations
  • Including premium rates of pay as part of minimum wage. This is when employees are paid a higher rate for some of the work they do – this cannot be included in minimum wage calculations.

You can read the National Minimum Wage Guide for Employers from the Department for Business Energy and Industrial Strategy, or use HMRC’s online course on paying workers the national minimum wage.

Or you could ask us!  At All Payrolls we can answer your national minimum wage questions or we can take all the hassle away from you and manage your payroll completely.  Why not give us a call or visit our Payroll web page for more information.

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