Raising the minimum wage to £6 an hour would have significant implications for all businesses, warns a payroll specialist.
HR Zone recently reported on fresh calls from the Trades Union Congress (TUC) to raise the minimum wage to more than £6 an hour this year.
Workers (aged 22 years plus) are entitled to a basic wage of £5.52 an hour, falling to £4.60 for those aged 18 to 21, with younger workers (aged 16 to 17 years old) taking home £3.40.
The TUC says that the adult rate should be payable from aged 18 and not 22, as it is at present.
The head of PAYEpeople, Allan Pearson, disagrees: “This year, north-west retailers gave employees an average pay rise of 5.5 per cent compared to the UK national average of 6.1 per cent. The TUC evidence to the Low Pay Commission recommends that the national minimum wage should increase to more than £6.00 per hour, an astounding 8 per cent on the current rate of £5.52.”
According to Pearson, a more manageable £5.72 an hour is sensible and whilst he disagrees with the proposed hike, he is behind the government for their recent efforts in enforcing the minimum wage.
Under tighter laws, PAYEpeople warns that there will be an initial penalty of up to £5,000 for all underpaying employers, and employers will be legally required to keep sufficient recorders that comply with national minimum wage.
PAYEpeople also advises employers to keep all records for a minimum of six years because a civil case may be brought six years after an alleged failure to pay.
