Small firms ’confused’ by National Minimum Wage
A study by an independent business services group has found that almost a third of small enterprises are unaware the NMW will increase on 1 October, despite a Government drive to promote the issue. This figure increases to 44% for firms with fewer than four members of staff.
From 1 October 2008 the main adult rate of the NMW rises from £5.52 to £5.73 per hour. In addition, the hourly development rate increases from £4.60 to £4.77 and the rate for workers aged 16 and 17 climbs from £3.40 to £3.53 per hour.
‘It is worrying that there is still so much uncertainty among small businesses about NMW levels, particularly when the Government is introducing tougher penalties for firms who, for whatever reason, fail to abide by minimum wage legislation,’ a spokesperson warned.
Following a series of high profile breaches, the Government has also outlined proposed changes to how the NMW is enforced. Reforms include tougher penalties for non-compliance, greater powers for inspection officers and a new method of calculating arrears.
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Date: 09-09-2008