Have You Paid the Correct Minimum Wage?

Employers must ensure they pay staff at least the National Minimum Wage (NMW) or National Living Wage (NLW). The NMW and the NLW are the minimum legal amounts that employers must pay their workers.

The NLW is the minimum hourly rate that must be paid to those aged 23 or over. The rates quoted below are for the period from 1 April 2022 – 31 March 2023. The rate for the NLW is £9.50. The hourly rate of the NMW for 21-22-year-olds is £9.18. The rate for 18-20-year-olds is £6.83 and the rate for workers above the school leaving age but under 18 is £4.81. The NMW rate for apprentices is also £4.81.

It is important that employers ensure they pay the necessary minimum wage rates as there are significant penalties for employers who are found to have paid workers less than they are entitled to by law. If an employee has been underpaid, the employer must pay any arrears without delay. There are penalties for non-payment of up to 200% of the amount owed. The penalty is reduced by 50% if all of the unpaid wages and 50% of the penalty are paid in full within 14 days.

The maximum fine for non-payment can be up to £20,000 per employee and employers who fail to pay face up to a 15-year ban from being a company director as well as being publicly named and shamed.