The National Minimum Wage is increasing on 1st April 2023 to £10.18 gross per hour for employees aged 21-22, to £7.49 gross per hour for employees aged 18-20, and to £5.28 gross per hour for workers aged 16-17. In addition, the apprentice rate is £4.81 per hour. The daily accommodation offset rate increases to £9.10.
The gross rate of pay for anyone aged 23 and over is increasing from 1st April 2023 from £9.50 gross per hour to £10.42 gross per hour. It is your responsibility to ensure that your employees receive the minimum National Living Wage, if appropriate. Please contact Taxing Nannies if you are unsure as to the rate that is being paid.
Up until now, au pairs and domestic workers living with a family could be exempt from the minimum wage requirements, when they lived as part of the family sharing in tasks and leisure activities on the same basis as the family. However, the Government have agreed to remove this exemption, although no legislation has yet been put before Parliament.
Therefore, employers should ensure that any live in worker is paid the minimum wage as stated above. Please note that the rates stated can be reduced by the accommodation offset rate above.
Please note that anyone can report an employer to HMRC for not paying the minimum wage. The initial report can be anonymous.
If HMRC finds that an employer has not paid at least the minimum wage, they can send a notice of arrears plus issue a penalty for not paying the correct rate of pay.
HMRC can also take employers to civil court for not paying the National Minimum Wage or National Living Wage. The maximum fine for non-payment is £20,000 per worker. Employers who fail to pay can be named publicly and banned from being a company director for up to 15 years.
