Description
This release will allow you to monitor if your payees are in breach of National Minimum Wage levels. Where National Minimum Wage has been enabled a new stage has been added after Pension Automatic Enrolment stage.
When reaching this new stage the system will each payee’s pay to determine if there is a breach. If there is, ‘Yes’ will be displayed in the Pay Batch Summary screen against those payees affected. If there is no breach, then ‘No’ is displayed and if the payee is not monitored for NMW or that the payee does not have any NMW pay, N/A is displayed.
If the payee is monitored for NMW, the system will determine the payee’s NMW pay rate using the following rules:
For each separate worked period:
For each job order, it sums all the earnings that are flagged as being part of NMW determination
For each job order, it finds the payee’s basic pay rate that is on the payee’s job order.
It reduces the NMW pay by any premia value that should not be included
It then divides the NMW pay by the NMW hours
It identifies the statutory NMW rate relevant to the payee’s age and apprenticeship status
If the calculated NMW pay rate is below the statutory NMW rate, it outputs a breach.
If there are multiple basic pay rates within a job order, the system will apply an average of those rates to have 1 basic NMW pay rate.
If the job order rates do not have any pay codes set with an NMW Base Rate indicator checked on, NMW will not be able to be determined.
NMW will only be determined from the point it is enabled. It is not retro applied to prior historical pay batches.
Benefits
Allows for the monitoring of National Minimum Wage rules.
Configuration
Please refer to the following sections to configure NMW:
National Minimum Wage - Hierarchy