Business guides: national minimum wage

With hefty fines for those that flout the law and the government publicly naming and shaming those who do, salon owners need to know the small print relating to the National Minimum Wage.

5 things you need to know about national minimum wage

1. You cannot pay less than the minimum wage and if you do you can expect a hefty fine of up to £20,000, plus 100% of the unpaid wages for every worker effected. 2. The National Minimum Wage is the gross figure from which employers would deduct tax and national insurance as applicable. 3. Taking the wage below the NMW after the following deductions would be legitimate:

• Deductions from pay in lieu of an advance of wages
• Deduction from pay in order to recover an accidental overpayment of wages
• Deductions from pay in lieu of the purchase of goods or services from the employer
• Payment for accommodation

4. The Current National Minimum Wage and Living Wages are:

Year	25 and over	21 to 24	18 to 20	Under 18	Apprentice
2016	£7.20	£6.95	£5.55	£4.00	£3.40
April 2017	£7.50	£7.05	£5.60	£4.05	£3.50

5. Currently, the apprentices’ wage only applies to trainees aged 16-18 or over 19 in the first year of their apprenticeship, after which they revert to the age 18-20 rate

Useful links

ACAS guide: National Minimum Wage Gov.uk: National Minimum Wage Rates