The National Minimum Wage increases in each year. Here is the updated national minimum wage guide for employees and employers as of April 2020. It is set to change again in April 2021.
The current rate:
|Over 25 year olds||6.2%||£8.21||£8.72|
|21-24 year olds||6.4%||£7.70||£8.20|
|18-20 year olds||4.8%||£6.15||£6.45|
|Under 18 years old||4.5%||£4.35||£4.55|
If you don’t pay the national minimum wage to your staff you could face fines, naming and shaming and tribunal claims.
2021 rate change:
|Over 25 year olds||2.2%||£8.72||£8.91|
|21-24 year olds||2%||£8.20||£8.36|
|18-20 year olds||1.8%||£6.45||£6.56|
|Under 18 years old||1.5%||£4.55||£4.62|
National Living Wage
The National Living Wage is what you might consider the amount for employees and their family to be able to live and pay for day to day needs. This isn’t mandatory but many employers are leading by examples and paying this instead of the National Minimum Wage.
On 6th April 2019, the law extended the right to receive payslips to those recognised as ‘workers’. Additionally, if an employee is working different hours each month then the number of hours must be included on the payslip.
Your employer must provide you with a payslip. Your payslips can be used as proof of your earnings, tax paid and any pension contributions.
They do not have to do this if you’re:
- not an employee or ‘worker’, for example a contractor or freelancer
- in the police service
- a merchant seaman
- a master or crew member working in share fishing (paid by a share in the profits or gross earnings of a fishing vessel)
Employers can choose whether they provide printed or electronic (online) payslips.
Payslips must be provided on or before payday.
TOP TIP FOR EMPLOYERS – If you have not already done so, discuss this change with your payroll team to ensure that you have the current legal procedures and information in place.
This page is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action. Please contact us if you have any questions