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Are you getting minimum wage payments right?

Last Tuesday, the government 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 their workers. Each of the employers named has had to repay their staff for the shortfall and have also faced financial penalties of up to 200% of their underpayment.

The list includes businesses of all sizes, including some major high street brands. For instance, Estee Lauder, Easyjet, Greggs, Moss Bros, Currys, and NHS Highland all appear on the list.

It is clear that the government will take enforcement action against employers that do not pay their staff correctly. Since it can be easy to unintentionally underpay a worker, such as when they hit 18 or 21 when there is a mandatory increase, it is a good idea to regularly review your payment rates.

This is especially important as we come to the start of a new tax year on 6th April as the rates of pay are increasing 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
Apprentice£5.28£6.40
Accommodation Offset£9.10£9.99

If you need any help with your payroll or reviewing whether your wage payments are correct please feel free to contact us we would be happy to help you!

See: https://www.gov.uk/government/news/over-500-companies-named-for-not-paying-minimum-wage

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