National Minimum Wage Increase and HMRC's Excuses for Not Paying Minimum Wage

Published: 23rd March 2017

 New National Minimum Wage Rates 

From 1st April 2017, the National Minimum Wage Rates (which represents gross pay) for both hourly paid and salaried staff are as follows: 

To accommodate these changes and avoid penalty costs (if you haven't already) you should:

    • check who requires a pay increase within your business;
    • take the appropriate payroll action;
    • and let applicable workers know about their new rate.

HMRC's lamest excuses for not paying minimum wage

Paying less than the National Minimum Wage is for most, the result of an administrative error rather than any attempt to get around the law.  Unfortunately, some business owners clearly don’t feel the law applies to them as demonstrated by this list recently published by HMRC for the worst excuses for not paying the national minimum wage: 

5. Because I’m worth it – they’re not
“It’s part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.”

4. Performance-related pay
“The employee wasn’t a good worker so I didn’t think they deserved to be paid the national minimum wage.”

3. Yeah, but they signed on the dotted line
“I’ve got an agreement with my workers that I won’t pay them the national minimum wage; they understand and they even signed a contract to this effect.”

2. It’s not who you are, it’s who you think you are
“My workers like to think of themselves as being self-employed and the national minimum wage doesn’t apply to people who work for themselves.”

1. Standby me
“My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.”


For further advice and guidance on the national minimum wage or any other HR related issue, please email or give us a call on 01484 841776.