As you may be aware the
National Minimum Wage (NMW) rates
increased from 1 October 2009 to:
- an adult rate of £5.80 an hour. This
is payable to those age 22 and over.
- a development rate of £4.83 for
those aged 18 - 21
- and for 17 year olds a rate of £3.57
an hour.
A change was made from the same date,
to the elements of pay which can count
towards the payment of the NMW rate. Tips,
gratuities, cover charges and service
charges do not count from 1 October 2009
towards NMW in any circumstances. This is
a change to the previous rules which
allowed such payments to count towards the
NMW rate in certain circumstances.
As detailed on the Business Link
website:
".before 1 October 2009, tips,
gratuities, service charges and cover
charges did count towards the NMW as
long as you paid them to your workers
through your payroll. They no longer
count towards the NMW, regardless of
whether they are paid through your
payroll or are given direct to workers
by customers or a tronc master."
If you have any queries on the NMW, or
how this change impacts on your employees,
please do get in touch.
Internet links:
Business Link Website
Employer Bulletin |
