Employers should be aware of the pitfalls of NLW and NMW

Employer Comments Off on Employers should be aware of the pitfalls of NLW and NMW

The National Living Wage (NLW) for those aged 25 and over was increased on 6 April 2017 from £7.20 per hour to £7.50 per hour.

It should be noted that the increases in the NLW rates are in April whilst those for NMW are in October and employers have to address these increases on a six monthly basis. Furthermore if an employee is coming up to age 25 it is possible that they may have 4 pay increases in the space of few months because of the move from NMW to NLW.

Officers from HMRC can carry out NMW inspections at any time. Where HMRC finds a breach, a notice of underpayment will be issued and you could become named and shamed.

For more information please get in touch with Helen Hewitt or Sue Stephens.