Living Wages are Paid

How to comply 1

You need to:

  • Be aware of the legislation
  • Pay workers at least the appropriate minimum wage for the work they do
  • Provide workers with payslips
  • Pay workers their correct benefit entitlements
  • Be aware of annual changes in minimum wage levels

National minimum wage for all workers

Age of workers

To take account of the different wage levels for different age groups, you need to:

  • Have a system for verifying the age of each worker (see section on Child Labour).
  • If you use workers under 22, ensure payroll knows the dates of birth of these workers and when their wages will need to increase to the next age bracket limit.

Hourly rates

  • Be clear about what type of work workers are doing i.e. whether the AWO applies to them or not.
  • Pay workers at least the appropriate minimum wage per hour for the type of work they do and their age.
  • Have records that demonstrate how pay is calculated and what is paid to workers.
  • Keep records for 6 years.

Piece rate workers

If workers are paid by the piece:

  • Record how many hours are worked.
  • Calculate the final pay based on the number of pieces completed.
  • Check that each worker’s total pay is at least as much as they would have earned had they been paid the appropriate minimum wage.
To check: total pay / number of hours worked = pay per hour

 

Making up wages

 

  • If the figure of ‘pay per hour’ above is less than the appropriate minimum wage, then you must make up the difference.
  • You should ensure that your policy on making up wages is clearly communicated to workers.
  • You should ensure that your system for making up pay provides the top-up at the same time as the piece rate element is paid.

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