Club Insure Risk Management’s HR Advisor, Claudia Williams, talks about the upcoming National Minimum Wage changes. How will this impact your club?
The National Minimum Wage is the minimum wage per hour a worker is entitled to in the UK. These rates are reviewed annually by the government. The government has confirmed that the National Living Wage (for employees over the age of 25) is set to rise by 6.2%.
This means a full-time worker who receives the National Living Wage will receive a pay rise of £930.
From 1 April 2020, the new National Minimum Wage will apply
- The National Living Wage for ages 25 and above is up 6.2% to £8.72
- The National Minimum Wage for 21 to 24-year-olds is up 6.5% to £8.20
- For 18 to 20-year-olds is up 4.9% to £6.45
- Under-18s is up 4.6% to £4.55
- Apprentice pay is up 6.4% to £4.15
It is important to ensure that, where required, your employees’ rates of pay are increased in line with the updated figures. HM Revenue and Customs can take employers to court for failing to pay at least the statutory rate.
It is also important to note that although these rates take affect from the start of April, workers are only entitled to the new rate for pay reference periods that start on or after 1st April. For example, if a monthly paid worker has a pay reference period that ends on 10th April, they would only be entitled to receive the new, increased rate from the first day of the new pay reference period, starting on 11th April.
Do you have any queries regarding the above, or any other health & safety or HR matters? Please feel free to contact the Club Insure Risk Management team for help and guidance.