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New National Minimum Wage comes into force

View profile for Sally Morris
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More than 2.5 million workers returning to work today from a long bank holiday weekend will find that they’ve received an above-inflation pay rise.

On Sunday 1 April, the National Minimum Wage (NMW) increased from £7.50 to £7.83 - a rise of around 4.4 per cent or £600 over a year.

Employers yet to make the appropriate changes to reflect the increased living wage should do so as a priority as they run the risk of harsh penalties.

Business minister Andrew Griffiths said: “Over two million people across the UK will get a step up in pay thanks to today’s rise in the National Living Wage and National Minimum Wage.

“The uplift means a pay rise of over £600 a year for a full-time worker on the National Living Wage – that could be two months food shopping or a year’s electricity bills.

“So if you should be getting a rise this month, check your pay, talk to your boss and report underpayment to Acas or HMRC.”

Failure to pay the new legal minimum wage can result in fines of up to 200 per cent of the amount owed and employers can be publically “named and shamed” by the Government.

Recent figures show that more than £9 million in backpay has been paid to around 67,000 workers since 2013.

In a related announcement, the Government also confirmed that workers paid by the hour will now be entitled to request a payslip, making pay “easier to understand and challenge if it is wrong”.

The specialist employment team at mfg solicitors are here to help employers carry out their legal duties. For more information about how we could help you, please contact us.