minimum wage increase company not honouring the change

iammeelse

The company I work for hasn’t seemed to honours the minimum wage increase that started on the 1st April, let me explain

 We get paid every 4 weeks, the cut off period for wages is a Sunday, 2 weeks before pay day

 As in, this month, we get paid on Friday 21/4 the cut-off date was Sunday 9/4

 I've logged onto our website to show this month’s pay slip and the entire last 4 weeks have been worked out at £9.50 phr, (I'm over 23)

 Surely from the 1st to the 9th of April the hourly rate as set by law MUST include the new hourly rate?

 When I phoned work they said “oh that doesn’t happen here, you get the new rate on next month’s wages”

 Surely that isn’t right, that’s a lot of people losing out on the new rate set by law,

 what can I do to get back what I'm rightly entitled to by law?

Dazed_and_C0nfused

If you look at the very bottom entry here I think you'll find you're out of look.

But maybe worth a call to ACAS just to be certain.

The new National Living and Minimum Wage rates will be introduced on 1 April 2023. Employers must start applying the new rates in the first pay reference period that starts on or after this date. Pay reference periods are usually set by how often someone is paid, for example one week or one month.

https://checkyourpay.campaign.gov.uk

iammeelse

according to gov.uk (www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nmwm09020)

When determining the pay reference period, it does not matter when the payment of wages is actually made. The important thing to consider is the period the payment covers.

so then the reference "period", is the 4 weeks leading upto the cut off date to calculate the wages , as in the previous cut of date leading to the current cut off date, isnt that the "period of payment"?

Dazed_and_C0nfused

iammeelse said:

according to gov.uk (www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nmwm09020)

When determining the pay reference period, it does not matter when the payment of wages is actually made. The important thing to consider is the period the payment covers.

so then the reference "period", is the 4 weeks leading upto the cut off date to calculate the wages , as in the previous cut of date leading to the current cut off date, isnt that the "period of payment"?

I don't think that that changes this though,

The new National Living and Minimum Wage rates will be introduced on 1 April 2023. Employers must start applying the new rates in the first pay reference period that starts on or after this date. Pay reference periods are usually set by how often someone is paid, for example one week or one month.

Pat38493

Also maybe this question should be moved to another board as it doesn't appear to have anything to do with pensions?

iammeelse

yeah move it

but "period the payment covers" MUST BE

The timesheets/rotas in the 4 weekly "period" leading to the cutoff date for the next pay date

LHW99

Dazed_and_C0nfused said:

iammeelse said:

according to gov.uk (www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nmwm09020)

When determining the pay reference period, it does not matter when the payment of wages is actually made. The important thing to consider is the period the payment covers.

so then the reference "period", is the 4 weeks leading upto the cut off date to calculate the wages , as in the previous cut of date leading to the current cut off date, isnt that the "period of payment"?

I don't think that that changes this though,

The new National Living and Minimum Wage rates will be introduced on 1 April 2023. Employers must start applying the new rates in the first pay reference period that starts on or after this date. Pay reference periods are usually set by how often someone is paid, for example one week or one month.

So if the cut-off date is 9th April, presumably the "first pay reference period that starts on or after" 1st Apil will be the one for the four weeks beginning 10th April - so from the May payment?

Dazed_and_C0nfused

LHW99 said:

Dazed_and_C0nfused said:

iammeelse said:

according to gov.uk (www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nmwm09020)

When determining the pay reference period, it does not matter when the payment of wages is actually made. The important thing to consider is the period the payment covers.

so then the reference "period", is the 4 weeks leading upto the cut off date to calculate the wages , as in the previous cut of date leading to the current cut off date, isnt that the "period of payment"?

I don't think that that changes this though,

The new National Living and Minimum Wage rates will be introduced on 1 April 2023. Employers must start applying the new rates in the first pay reference period that starts on or after this date. Pay reference periods are usually set by how often someone is paid, for example one week or one month.

So if the cut-off date is 9th April, presumably the "first pay reference period that starts on or after" 1st Apil will be the one for the four weeks beginning 10th April - so from the May payment?

That's how I read it yes.

iammeelse

what i meant was the cut off date, is the date that the previous 4 weeks are sent to head office to calculate the 4 weeks wages, which included the dates 14/3 to 9/4, and then pay day is 2 weeks later on 21/4

so they should of calculated for the increase of hourly rate

LHW99

iammeelse said:

what i meant was the cut off date, is the date that the previous 4 weeks are sent to head office to calculate the 4 weeks wages, which included the dates 14/3 to 9/4, and then pay day is 2 weeks later on 21/4

so they should of calculated for the increase of hourly rate

As dazed_and_c0nfused said:

The increase is from the first reference date after 1st April. The period 14/3 to 9/4 began before 1st April, so will all be at the old rate. The new rate should start from 10th April, and come in the next period's wages.

Pat38493

So theoretically speaking, a company could avoid minimum wage increases till the following year by paying their employees annually and 358 days in arrears!  (obviously there are other reasons this wouldn't work)