The National Living Wage is frequently in the news, with even large and reputable companies under the spotlight for not having kept up with regulations and incurring fines for underpaying some staff.

This has highlighted how important it is for companies of every size to understand their obligations and comply with the regulations.

The UK has two compulsory minimum pay scales in place, governed by two different sets of regulation:

• National Living Wage (NLW) regulations came into effect in 2016 and from April 2021, applies to anyone over 23.
  
  
• National Minimum Wage (NMW) has been in force since 1999 and applies to employees under 23 (from April 2021).
  
  

Rates for both the National Living Wage and National Minimum Wage are reviewed annually by the Low Pay Commission.



Penalties for employers who flout the regulations are punitive. If an employee can prove that they have not been paid correctly, HMRC can issue a fine and insist that employers pay any arrears. If these monies are still unpaid, the employment tribunal could impose fines of up to £20,000. 

In early 2021, there are currently around 7,000 accredited employers who support this scheme from very large employers, such as Google or Burberry, through to small, independent businesses. The charity says that by choosing to opt in to the voluntary Living Wage, organisations are more likely to attract the best staff.



As a reputable consultancy with over 20 years experience, we understand the nature of the local job market, which means we can offer you guidance on the optimum hourly pay rates and salaries to attract the best candidates.

For more information about setting appropriate pay rates, contact Tracy Welch at Priority Appointments on 01256 334575 or email us.