October each year brings the regular changes in employment legislation and here are the two main things changing this month or shortly after.
National Minimum Wage rates
The National Minimum Wage (NMW) rates which came into effect from 1 October 2016 are as follows:
- National living wage (NLW) rate for workers aged 25 and over: £7.20 (this remains unchanged)
- The rate for workers aged 21 to 24: up 3.7% to £6.95
- The development rate (for workers aged 18 to 20): up 4.7% to £5.55 (this remains unchanged)
- The young workers rate (non-apprentices aged under 18 but above compulsory school age): up 3.4% to £4.00
- The apprenticeship rate: up 3% to £3.40
This is the last time the rates should change in October each year. Future changes to the NMW and the National Living Wage will take place at the same time in April each year; therefore, expect a change from April 2017.
New Gender Pay Reporting Regulations expected April 2017
Gender Pay Reporting has been due to come into force for a while, and they are now expected to commence in April 2017 (possibly!).
The Gender Pay Reporting Regulations will require employers to calculate gender pay gaps using data from a specific period which will be specified when the legislation comes into force, although expect it to be April of each year. Once a “snap shot” has been taken, employers will have up to 12 months to publish this information and then yearly thereafter.
The regulations will apply to employers with over 250 employees and employers will need to calculate and publish the hourly pay for women in comparison to the hourly rate for men. They will also need to submit evidence of compliance annually to the government.
There are many positive aspects to this as it may influence how potential employees view companies and it could help boost the profile of companies. Having this transparency will encourage companies to revisit and reflect on their pay rates which will mean greater fairness and equality in the workplace.
Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.