The National Minimum Wage (NMW) can be a business owner’s worst nightmare and a payroll headache. Imagine the horror of being named and shamed by the Government for underpaying employees. Unfortunately, this nightmare became a reality for over 200 UK employers, ranging from major high street brands to sole traders. The repercussions? A staggering £7 million in penalties and the task of compensating 63,000 workers. It’s time to face the NMW challenge head-on and get it right to avoid becoming the next horror story.
Even household favorites like WH Smith, Lloyds Pharmacy, and M&S were caught in the net of miscalculated employee pay. This serves as a clear message from the Government – no employer is exempt from their responsibility to provide workers with the statutory minimum wage.
NMW Changes and Monitoring
Keeping up with the annual changes to NMW requires companies to ensure their payroll systems accurately reflect these updates. However, this process often proves time-consuming and prone to manual errors. As humans, mistakes can happen even with the best intentions. Nevertheless, it is crucial that everyone receives fair compensation for their work, particularly when many households struggle with the cost of living crisis.
With paiyroll® there is no need for manual intervention when it comes to NMW, which means no human errors. We offer an automated solution that generates NMW reports for every pay run, including per shift and overall calculations for all pay and deductions.
To support the lowest-paid workers, the Government increased the NMW and National Living Wage on 1 April 2023. Make sure that your payroll is updated, guaranteeing that all your workers receive at least the legally entitled minimum. Monitoring NMW compliance should be an ongoing practice, not limited to yearly checks or when the government announces changes. While it may require time and effort, getting it right is essential to avoid fines.
NMW Calculations
Calculating the correct NMW can be a complex and confusing task. Factors such as salary, hourly rates, piece work, employee age, holidays, benefits, accommodation, and travel time must be carefully considered. If you are unsure, check out the GOV.uk guidance on calculating NMW here.
Automating NMW for Peace of Mind
With paiyroll® there is no need for manual intervention when it comes to NMW, which means no human errors. We offer an automated solution that generates NMW reports for every pay run, including per shift and overall calculations for all pay and deductions. With paiyroll® you can be confident that you’re paying the right amount effortlessly.
To learn more about how we can simplify your payroll processes, with trustworthy NMW calculations, book a free personalised demo with us.
