Following the announcement that National Minimum Wage will increase in April 2025 and following the  Personal Care Compliance Forum, HMRC has released new guidance on National Minimum Wage. Below, we have outlined information for employers and employees

Employees:

Earned it, owed it, been paid it? 

If you’re employed in the hair and beauty sector, you’re entitled to be paid the National Living Wage (NLW) or National Minimum Wage (NMW) 

The NLW and NMW are the minimum hourly pay rates that most workers in the UK, including apprentices, are entitled to be paid. The NLW is higher than the NMW – workers get the NLW if they are 21 and over. 

It doesn’t matter if you’re working full time, part time or in a temporary role, you are entitled to be paid the correct hourly rate for all the time you work – it’s the law.

The rates from 1 April 2024 are: 

If you think you’re not being paid the right amount 

• Check what rate you should be paid using the Check Your Pay information on GOV.UK 
• Watch this video to find out what to do if you think you’re being underpaid. 
•  If you feel you are being underpaid or were unpaid within the past 6 years you can make an anonymous complaint using this form HMRC will ensure any pay owed to you is paid at the current NMW rate.
• If you’d like to talk to someone about your concerns you can call ACAS 0300 123 1100, ACAS is a government organisation that provides free, impartial information and advice on all aspects of working life. 

Employers:

National Minimum Wage 

If you employ someone in the hair and beauty sector, make sure you’re paying them the National Living Wage (NLW) or National Minimum Wage (NMW)

 NMW is the hourly rate employers must pay most workers for the time they work. The NLW is the hourly rate that must be paid for all workers aged 21 and over.

Even if you pay the right rate, you could still be underpaying your workers. Common causes of underpayments are

• Deductions or payments – any costs relating to the job that are met by the worker, or you take out their wage, could reduce pay for example for a uniform or equipment. Further information is available on GOV.UK Payments and Deductions
• Unpaid Working time – for example asking a worker to arrive before a shift starts or finishing later than the shift ends, time to attend team meetings, or training time.  
• Apprentice rates – apprentice rate applies for people under 19 and those 19 or over in the first year of apprenticeship. The rate only applies when the apprenticeship starts. Apprentices must have an apprenticeship agreement/contract and get a qualification to qualify as an apprentice for NMW. Further information is available on GOV.UK Apprentices
• Uplift rates – pay rates must be increased at key birthdays, age 18 and 21, when NMW/NLW increases each April and when an apprenticeship ends or after the first year of apprenticeship if 19 and over. Further information is available on GOV.UK Eligibility for the minimum wage.

For further advice and guidance contact ACAS on 0300 123 1100 Monday to Friday 8am to 6pm. ACAS is a government organisation that provides free, impartial information and advice on all aspects of working life.

Further guidance is available here.

Checklist for Employers Calculating the minimum wage – A checklist for employers 

If you think you have underpaid your staff

You should correct their pay going forward and pay back any underpayment. You can report the amounts of any underpayments to HMRC by emailing voluntarydeclaration.nmw@hmrc.gov.uk to request a copy of the voluntary declaration form.