How to avoid national minimum wage pitfalls

Paying the wrong rate of national minimum wage can result in a damaging HMRC investigation. Simon Parsons, director at SD Worx, explains how to safely navigate the five biggest complexities

It can be easy to assume that following national minimum wage (NMW) law is as simple as paying your workers the correct amount. But in fact, there is far more to consider to make sure you are compliant.

With the UK now over a month into its 2024 national living wage increase to £11.44 (for those aged 21 and over), businesses urgently need to review their current payroll processes to certify they’re up to date. Otherwise, they risk inclusion on the government’s latest NMW name-and-shame list.  

The main reason for a breach of NMW rules is breaking the pay deduction rules, making up 35% of infringements, followed by unpaid working time (31%), incorrect apprenticeship rates (16%), and incorrect work type (6%).

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