Important changes to the National Minimum Wage are set to come into force on 1 October, and all businesses that employ low-paid people, or have staff who receive tips from customers, should familiarise themselves with the changes.

The National Minimum Wage is due to rise for workers aged 22 or over, from £5.73 to £5.80 an hour. It will go up from £4.77 to £4.83 an hour for people aged 18 to 21 and it will rise from £3.53 to £3.57 an hour for 16 and 17-year-olds.

Using tips to raise staff pay to the Minimum Wage will be outlawed on the same date. When announcing this change, Pat McFadden, who is now the Minister for Business, Innovation and Skills said that it was not right for employers to use tips meant as a bonus for staff to boost pay levels to the legal minimum.

These changes could lead to a possibility that some businesses may experience an increase in their costs which could force them to shed staff.

Mercers is experienced at helping businesses ensure that they fulfil all their legal responsibilities, including compliance with the requirements of the National Minimum Wage. If you have any concerns about what these changes may mean for your business, please call Adam Marshall on 01491 572138.