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Introduction to this document

Letter advising of NMW rate increase (due to legislation)

All employers must pay their employees at least the national minimum wage (NMW). It is reviewed annually and, so far, it has always risen. When this happens, you should notify any staff affected that their hourly rate will rise due to changes in legislation. Use our letter to do this.

 

Notifying changesĀ 

When NMW rates change, you must action them immediately - never delay doing this. A failure to do so could mean that you are reported to HMRC; it has the power to investigate actual or potential breaches and impose fines. Also those employers who flout NMW rules can find themselves the subject of a government press release which draws attention to their activities.

So that your employees are in no doubt that you are paying them the correct NMW rate, write to all those affected once a change in legislation is announced. You can use our Letter Advising of NMW Rate Increase (Due to Legislation) to explain what has happened and why.

Tip. If you discover that you've accidentally underpaid an employee the correct rate of NMW, rectify the situation immediately. This will head off any complaint to HMRC.