minimum wage increase

Laura8192

the NMW increased from 01/10/2013 to 6.31 an hour, does this come into force for hours worked after 01/10/2013 or hours paid after 01/10/2013? My clients employees work a week in arrears....

Looked online but cant find any helpful info

Thanks :-)

deanshepherd

I would assume hours worked.

Rozzi Rainbow

I too was wondering this! I've just checked the ACAS website and their wording is "It is important to note that these rates, which come into force 1 October 2013, apply to pay reference periods beginning on or after that date". I don't think that's overly clear though!

Laura8192

I only have 1 client with 2 employees on Minimum wage, they both do 16 hours, so I just paid them 16 hours this week at £6.31. Even though they are being paid this week (4th Oct) for hours worked 22nd to 28th September.

It works out an increase of only £1.92 a week each, so my client has had to shell out around £4 more.

But if you had a big company with lots of staff on minimum wage, that soon adds up if we are all paying them a week extra at the new minimum wage......

I just thought better for my client to be £4 out of pocket than fined for not paying NMW.

deanshepherd

Rozzi Rainbow wrote: »

"..apply to pay reference periods beginning on or after that date".

I would interpret that to mean if, for example, your monthly pay period covered 15th September to 15th October then that could all be at the old rate (because that period started prior to 1st October).

The next pay period commenced after 1st October so in this example the increase would only need to be reflected from 16th October.

Interesting.