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Minimum Wage

Question for HM Treasury

UIN 200170, tabled on 11 June 2014

To ask Mr Chancellor of the Exchequer, how many of the financial penalties for non-compliance with the minimum wage issued by HM Revenue and Customs in 2013-14 were for the then maximum sum of £5,000.

Answered on

18 June 2014

The Government takes the enforcement of the National Minimum Wage (NMW) very seriously. HMRC review every complaint that is referred to them by the Pay and Work Rights Helpline (0800 917 2368). In addition, HMRC conduct targeted compliance activity based on data received from various sources and robust risk assessment processes, to identify the sectors and employers across the United Kingdom, who are considered more likely to be failing to pay NMW.

The Government has increased the financial penalty percentage that employers pay for breaking minimum wage law from 50 per cent to 100 per cent and the maximum penalty has increased from £5,000 to £20,000. The revised penalty is calculated as 100 per cent of the total underpayment for all of the workers specified in a Notice of Underpayment relating to pay reference periods that commence on or after 7 March 2014.

HMRC issued the maximum penalty of £5,000 to 52 employers identified as owing workers arrears of pay under national minimum wage legislation in 2013/14.

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