These educational letters could be the precursor to an investigation if action is not taken, and we have, therefore, listed some frequently asked questions to assist employers in understanding those obligations, and the areas of potential risk.
What is the National Minimum Wage?
The NMW is the minimum amount an employee should be paid per hour; this is called the National Living Wage for employees over 23, and the NMW for employees under 23. The amount is changed each year, and the rates for 2022 are shown below:
|Over 23 (National Living Wage)
Meeting the NMW requirements is more than just making sure the correct amount is paid each hour. Requirements placed on staff, and deductions from their wages are taken into consideration by HMRC potentially resulting in employees pay notionally reducing for a particular period, thus causing it to fall below the NMW (resulting in a breach).