Minimum Wage increases postponed until 2018

For those of you expecting a small pay rise this October, with the annual raise of the National Minimum Wage, you could be in for a wait. This year, the Government announced some changes to the way National Minimum Wage is reviewed, so you might not get your pay rise until April.

Until now, National Minimum Wage increased in line with inflation every October. However, when the Living Wage was introduced, this was increased every April in line with the start of each new tax year.

It was considered that the National Minimum Wage should be brought into line with this, so now, increases will come into effect from April, not October as previously. Having one date for everything would also simplify the process for employers’ payroll departments, plus it adds some transparency for employees and brings any raises in all at the same time. From a compliance perspective, it should also make the process much more clean cut.

Employer’s should no longer increase the rates of pay for employee’s earning at the Minimum Wage every October and should instead wait for April. There is no need to inform employee’s unless they ask, as the increase would have been automatically applied by the Employer anyway without any action from the employees.

Full details of the current and historical rates can be found here.

For more detailed enquiries, contact Wilkins Kennedy’s payroll team to see how we can help.

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