The factsheet entitled National Minimum Wage information for employers has been updated to reflect the introduction of the new National Living Wage (NLW) on 1 April 2016. The factsheet provides employers with information on the type of checks HMRC make to ensure that employees are being paid at least the minimum legal amount they are entitled to as well the process for making an appeal via the Employment Tribunals.
During a visit HMRC are allowed to ask for:
- any information they think will show whether workers are being paid at least the NMW or the NLW
- explanations of anything contained within records
- any additional information we need to determine whether the NMW or the NLW has been paid
There are penalties for employers that are found to have underpaid their workers and in some cases there may be criminal prosecutions.
The NLW has been set at £7.20 per hour for those aged 25 or over. This represents an increase of 50p over the current NMW rate. The NMW will continue to apply for those aged under 25. The current NMW rates are; apprentices £3.30 per hour, under 18s £3.87 per hour, 18 – 20 £5.30 per hour over 20s £6.70 per hour. The hourly rate of the NMW will increase to £6.95 (a rise of 25p) for adults 21-24 year olds from 1 October 2016 with similar rises in the other NMW bands.