Increased Penalties for Employers Who Fail to Pay Minimum Wage

17 - 01 - 2014

Under new proposals, the maximum penalty for failure to pay National Minimum Wage could rise to £20,000. 

Employers, by law, must pay their employees National Minimum Wage.


The current penalty for failing to pay Minimum Wage requires employers to pay the wages that are due to their workers, plus an additional financial penalty to HM Revenue and Customs.


The fine is calculated as 50 per cent of the total underpayment for all workers found to be underpaid, with a maximum penalty of £5,000.


Under new proposals, the maximum penalty will rise to £20,000. The financial penalty will also rise to 100 per cent of the total wages owed.


If approved, the new rules are expected to come into force in February 2014.


The current hourly rates for National Minimum Wage are £6.31 for Over-21s, £5.03 for 18 to 20s and £3.72 for Under-18s.



Questions about Minimum Wage?


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