14 February
By Victoria Wainwright
Categories: Government/Industry News

Increases to statutory payments - Don’t get caught out!

The Government has confirmed increases to statutory payments from 1st April 2018 with the Low Pay Commission announcing that workers aged under 25 will see “the largest increase in a decade” in their statutory minimum wage.

The increases taking place from April 2018 are as follows:

The calculation of national minimum/living wages hit the headlines last year as the Government continued with its minimum wage enforcement investigations into employers and issued hefty fines to those found to have failed to comply with the law for a number of reasons.

Follow our top tips for staying compliant:

  1. When making pay calculations, be sure to make these at the required 52.17 weeks per year (rather than miscalculating to a straight 52 weeks in a year).
  2. Remember to account for overtime and also stay vigilant of the correct payment rates for apprentices. Unpaid overtime could lead to national minimum and national living wage rates being breached.
  3. Think about if your employees attend briefings before their shift start time or time is taken for security checks to be carried out at the end of a shift. Again, these situations may lower an employee’s basic hourly rate of pay.
  4. Watch out when deducting money from pay for uniforms.
  5. Where optional remuneration arrangements are in place (previously referred to as salary sacrifice or salary exchange schemes) ensure the reduced salary, incurred as a result of the scheme doesn’t take an employee’s hourly rate below that of the national minimum and living wages.

We can help

If you’re still not sure and you need help, contact our in house payroll team who will be happy to discuss your individual circumstances.