New NMW rates on the way

Employers are reminded that new National Minimum Wage (NMW) rates will take effect from 1 October 2013.

From that date, the rate for employees aged 21 and over will rise by 12p an hour to £6.31 and by 5p to £5.03 for those aged 18-20.

Under-18s will receive a 4p an hour increase, taking their hourly rate to £3.72, while the rate for apprentices aged 19 and under in their first year of employment will go up by 3p an hour to £2.68.  Apprentices aged 19 or over and past their first year receive the rate appropriate to their age.

Meanwhile, employers who fail to pay NMW rates are set to be publicly named and shamed under new government plans, announced on 23 August.

The revised NMW naming scheme, which will come into effect in October 2013, will remove restrictions on naming employers who break the law, exposing them to the risk of negative publicity and reputational damage as well as the financial penalties they face for failing to pay NMW rates.

Employment Relations Minister Jo Swinson said: “Paying less than the minimum wage is illegal. If employers break this law they need to know that we will take tough action.”

In 2012-2013, HM Revenue & Customs identified 736 employers who had failed to pay NMW, leading to the recovery of £3.9 million in unpaid wages for over 26,500 workers.

Workers who believe they are not receiving the minimum wage they are entitled to can contact the free and confidential Pay and Work Rights Helpline on 0800 917 2368.

Link: NMW information