Increase in Minimum Wage – what does the next 12 months hold?

It has been announced that minimum wage is set to increase again this October to the following rates;

•    £6.70 for workers 21 and over
•    £5.30 18 - 20 yrs
•    £3.87 for 16-17 yrs, who are above school leaving age but under 18
•    £3.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

As always, it is good to be ahead of the game and make sure that any staff that your currently pay below this amount are paid correctly before October to avoid any penalties from the Low Pay Commission.

ACAS have recently launched a helpful online tool which guides employers through managing employees pay http://www.acas.org.uk/payguide which clients may find to be of use.

 

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Published: 03 Sep 2015

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Nicola Porter - Lawgistics Ltd (01/10/2015)
Hi Simon, ideally to make life easier, we would encourage that you pay your salesman minimum wage as their basic and reduce their commission payments, as having to constantly ‘top up’ their wages, may cause issues. If you are continuing to pay in this way, then you must make sure that your covering minimum wage as well as honouring the commission structure you already have in place. i.e. if an employee is 25 and works 40 hours in a week, they must be paid as a minimum of £268.00 for that week, whether this be from their basic, or basic and commission.
Simon (01/10/2015)
How will this affect salesman that get paid a basic salary below the minimum wage but commissions on top then exceed it? Thanks, Simon



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