National Minimum Wage Fines: Croner Crunches The Numbers


25 Jan 2018


From April 1 the National Living Wage, Minimum Wage and more will change. Employers must ensure they completely comply with the changes, as businesses paying their employees below the minimum wage will be fined and publicly named and shamed.

Two of the most high profile businesses to fall foul of this were Primark and Sports Direct at the end of 2017. Both companies were ordered to pay thousands of pounds back to staff and were among 260 businesses to be publicly reprimanded.

National Minimum Wage - Infographic

What’s Changing?

The minimum wage is set to rise - with pay for apprentices going up by 20p an hour, and there will also be an increase to the Personal Allowance, the amount an employee can earn a year tax-free, from £11,500 to £11,850. The hourly rate paid to over-25-year-old workers - currently at £7.50 - will go up to £7.83 from April 1 and the 4.7 percent increase could see some people as much as £600 better off.

How To Get Pay & Benefits Right

Employers need to be proactive and start to review their pay structures now. By investing in this early it means they will have a pay structure in place that can support them over the coming years and can avoid the significant fines they may be at risk of receiving.

We’re Here To Help

Croner Reward is one of the most accurate and knowledgeable benchmarking resources in the UK, which employers can utilise to set their pay and benefits packages to help ensure you meet current legislation. For more information on our expert pay and benefits services call 0808 145 3383.

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