OverviewThe ‘NMW/NLW Batch update’ enables users to preview which employees fall below the National Minimum Wage/National Living Wage, and update all employees in one go.
The rate of pay for both National Minimum Wage and National Living wage are updated in the back end of the system by Fourth. It is then the responsibility of the customer to run the update to increase the hourly rate for any eligible employees.
NMW/NLW Rate UpdateLog into the people system and within the HR module scroll over the employees menu and select the ‘NMW/NLW Rate Update’ submenu.
- This updates all hourly paid employees to a rate of at least the National Minimum Wage/ National Living Wage, (according to the age of the employee at the effective date).
- This never reduces an employee’s pay – only ensures they are paid either the NMW or minimum rate of pay according to job title pay bandings (whichever is higher).
- The changes affect the employee’s main job role and any multiple employment positions- this is shown on the preview by the ‘Is ME?’ column.
- The Rota Wage Cost on all open rotas update on the effective date. If rotas are opened before the update is run, forecasted wage cost will be inaccuracte.
- Within the job titles there is the ability to link rates of pay for upper and lower job title bandings. When using
- The batch update will update everyone to at least NMW to ensure the customer is compliant, however The National Minimum Wage Update functionality does not automatically update the bandings within a job title. These should be manually updated to ensure new starters are not employed beneath the minimum wage.
- If bandings are in place an employees pay rate will automatically update when they move from one age band to another.
- To update the job title pay bandings, select HR > Company Admin > Job Titles > Link pay rate
- Select Job Titles then Link rates of pay to job titles
Fig 1- Update pay bandings
Alerts & RemindersReminders can be set up in HR to alert users that an employee is going to have a significant birthday in that month.
HR>Audits & Alerts>Reminder set up
- Reminders are delivered on 1st of each month.
- They can be set up to be delivered to multiple recipients; either to a Location email or to an Individuals work email. (Work email Field)
Fig 2 – Current reminders
Frequently asked Questions:I want to run the NMW/NLW update for a future date. What will this affect?
Best practice is to run the update in advance and enter an effective date.
- All employees who fall below the NMW/NLW on the effective date. This includes multiple employments.
- Rota costs will update on the effective date, therefore this will not display within the rota wage cost until the effective date arrives. For example; if the rota for W/C 23rd march is open prior to running the update, the rota wage cost will not change until the effective date of 1st April has arrived. To view the updated Rota wage cost Rotas must be deleted and a new one created.
If an employee is paid more than NMW and we use the NMW/NLW batch update - does the employee fall back down to the NMW rate?
No – If the employee is paid over the NMW they will hold their rate. They will not appear on the file that is generated from running the NMW/NLW preview, therefore they will not be included on any update.
If I increase my pay bandings above the NMW, will the NMW rate apply or will the minimum pay banding rate apply?
If the lower pay banding is set at £8 and NMW is £6.70, the £8 will apply to all employees on that job title. The same is true for National Living Wage.
What happens if I run the update in advance and an employee has a significant birthday (for example, from 24 to 25) and the job title they are on has the wage banding higher rate that the National Living Wage?
The employee will change to the new pay rate when their age changes.
What happens if I run the update in advance and an employee has a significant birthday (for example, from 24 to 25) and the job title they are has no bandings in place?
The employee will stay on the same rate. The NMW/NLW update can be run regularly to ensure all Employees rates are up to date.
When does the significant Birthday update happen?
The update will happen as part of the overnight process. If an Employees birthday is 2nd April, all hours scheduled on 2nd will be at the new pay rate.
If an employee has their 25th birthday after the 1st April, does the system update their rate of pay to the NLW automatically?
No - Running the NMW/NLW update preview with an effective date of the 1st April will not show the employee as they are still 24. If this is run on the 2nd April, the employee will now appear as they are now 25. However if pay bandings are in place the system will update their rate on their birthday.
If I run the update and then want to change an employees pay rate, what will happen?
Employees pay rates can be individually managed through the employment details page as normal or via the employee batch update. If the rise takes them above the impending NMW they will stay on the highest pay rate.
I have run my update with an effective date in the future but now I need to change a multiple employment.
The system will not be able to make this change as it is a conflict of information. This Multiple employment will need to be ended and the new rate entered.
I want to pay my employees £8, how do I do this quickly?
The quickest way to pay employees the same rate is via the employee batch update.
Employee>Employee Batch Update> Shift/Hourly rate
How do I pay a different rate of pay to employees in central or outer London?
In order to pay employees a different rate by location is to do this via the employee batch update, you can select the location you wish to change and apply the change accordingly. Alternatively, another set of job titles can be created with separate bandings for central/outer London and assigned to the correct locations
What happens to Apprentices moving from 19 to 20 years of age?
The employee will still be on the apprentice wage, the system will not move them to be on a higher rate even though their apprenticeship has ended, and the job title they are on has pay bandings. This means that Employees may fall below NMW if they have been on an apprenticeships for one year. If the NMW/NLW batch update is run, these employees will be included in the generated file.
Employees who are entitled to be increased from the Apprentice Wage to National Minimum Wage will need to be managed manually. Pay bandings will not automate this raise.
|Age||From 1 April 2019 (current) Rate Per Hour||From 1 April 2018 Rate Per Hour|
|25 and Over (National Living Wage)||£8.21||£7.83|
|21 and Over||£7.70||£7.38|
|18 to 20||£6.15||£5.90|
|Apprentice (all Apprentices under age 19 and any Apprentice regardless of age in first year of Apprenticeship)||£3.90||£3.70|
Fig 3 – Appendix