Important advice for young people working in hospitality from the Government Department for Business, Energy and Industrial Strategy on updates to both the living, and minimum wage.
Payslips are important, especially if you’re 16–24 and on the National Living Wage (NLW) or National Minimum Wage (NMW).
That’s because from April 1 the government increased the NLW and NMW rates for around two million eligible workers, including apprentices, in the UK. And for the first time, if you’re 23 or 24, you are eligible for the NLW rate of £8.91.
Your employer should automatically pay the new rates in your next payslip after 1 April, but it is important to check your payslip to make sure you are being paid correctly.
It’s a legal requirement for all workers to receive a payslip, and it is vital you understand its contents.
Your payslip must:
- Show earnings before and after any deductions.
- Include the amount of any deductions that may change each time you’re paid, for example tax and National Insurance.
- Include the number of hours worked if your pay varies depending on time worked.
- Explain any deductions, for example repayment of a season ticket loan. Employers can choose to do this either on a payslip, or in a separate written statement, which must be sent out before the first payslip.
The hourly rate for the National Minimum Wage depends on your age and whether you are an apprentice. The end of April will be the first time many workers who receive a monthly pay slip, will formally see the increase in the NMW and NLW if eligible to receive it.
If you are moving from the National Minimum Wage (NMW) to National Living Wage (NLW) for the first time, this equates to 71p more per hour or roughly £1,384 more per year on a 37.5-hour week at 52 weeks a year.
The NMW and NLW is a key part of the Government’s commitment to level up the UK and provide equal opportunities for all, as part of its plan to Build Back Fairer. As the economy re-opens people will be returning to jobs where NMW/NLW rates often apply – such as in hospitality and retail.
Workplace experts, Acas, has top three tips for young workers who are currently on the NLW or NMW:
Check your next payslip after 1 April pay rise comes into effect.
Have an informal chat with your boss or HR department if you feel that your employer is not paying you the right minimum wage.
News from the hospitality and catering industry is also being featured extensively in our Facebook and twitter social media accounts with the opportunity to engage with others in hospitality and share your views.
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