Government clamps down on minimum wage

Employers who pay their staff less than the national minimum wage (NMW) risk damaging their business reputation and suffer from low productivity and high staff turnover, a Government survey has found.

The findings come as the Department for Business Innovation and Skills steps up its scheme to 'name and shame' employers who break the law by failing to pay their employees the NMW.

According to the survey:

  • 80 per cent of consumers 'would not use the services of a business' if they found it paid less than NMW
  • businesses that pay the right rates see more productive staff, with eight in 10 employees admitting they would 'not work as hard' if they were underpaid
  • the majority (85 per cent) of employees said they would seek alternative work if they were underpaid.

Employment relations minister Jo Swinson said that the majority of employers pay their staff the NMW.

"The Government is cracking down on those few rogue companies who are not doing the right thing and breaking the law by underpaying their staff."

"Employers should be well aware of the different rates for the national minimum wage depending on the circumstances of their workers. Ignorance is no excuse."

Since 1 October 2013:

  • The adult rate (21 years plus) increased by 12p to £6.31 an hour
  • The 18-20 year old rate increased by 5p to £5.03 an hour
  • The 16-17 year old rate increased by 4p to £3.72 an hour
  • The apprentice rate increased by 3p to £2.68 an hour.

We can help with payroll and compliance with the new NMW rates. Contact us to find out how.