Avoid mistakes and oversights to pay the correct minimum wage rate

News article

Employers should be aware of potential pitfalls when it comes to paying staff the correct National Minimum Wage rate

Employers are being urged not to risk falling foul of National Minimum Wage (NMW) laws. HM Revenue & Customs (HMRC) is raising awareness about the potential pitfalls when it comes to paying staff above the legal threshold - and offering practical support to help them get it right.

Minimum wage mistakes

Some businesses may find themselves failing to fulfil their obligations through mistakes or oversights. More than 6,000 employers in the Belfast area underpaid their workers last year. The highest-risk sectors identified by HMRC in Belfast are retail, construction, and social care.

HMRC is writing to employers to raise awareness about their duty to meet minimum wage requirements. The letter will highlight common mistakes made by businesses and signpost them to further support to help with their obligations. It will also contain a checklist for employers to work through, which will help identify any mistakes they are making. HMRC will also offer some employers a free NMW Health Check with one of our experts.

Potential penalties

Following the law is important for employers as well as employees, as any business failing to comply could ultimately face penalties of up to 200% of their arrears. Businesses found to have underpaid their workers the NMW may also be publicly named.

Further minimum wage guidance

Employers can access support at any time to ensure they are paying the NMW correctly:

First published 14 December 2022