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“As a livery yard owner, the support from the EEA has been invaluable in the employment of our staff and the efficient running of the business.”
Day Dressage
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D & L Performance Horses
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News
The National Minimum Wage rises today
Upcoming increases to the National Minimum Wage (NMW), means equestrian businesses must adapt to remain compliant and viable.
On the 1st April, the rates of all age bands will rise.
There is also a significant change with the age eligibility threshold of the National Living Wage (NLW) being lowered to 21 years.
The awareness of the legal right to be paid NMW is the highest it’s ever been.
Grooms are growing in confidence to report employers for non-compliance and employers who underpay their staff face a fine of 200% of the arrears.
The new rates are:
| 21 and over | £11.44 |
| 18 - 20 years | £8.60 |
| Under 18 | £6.40 |
| Apprentices | £6.40 |
The Minimum Wage is not a choice to pay, it is the law and non-compliance is a prosecutable offence. HMRC has already identified the equestrian sector as one of a high level of non-compliance.
The EEA says,
“We must update the way the industry operates. We’ve got to streamline the daily running of the yard, including the staffing resource. Could just one groom perform the morning feeding duties, with the rest arriving later? This small change could save an employer a significant amount of their annual wage bill.”
The impact for employers this year is huge. For example:
A 20-year-old groom on the NMW is currently paid £7.49 per hour. If they are working an average of 50 hours per week, their annual salary is £19,474 (£7.49 X 50 = £374.50 X 52).
When they turn 21 this year, their new salary will be £29, 744 (£11.44 x 50 = £572 X 52).
That's an increase of £10,270 in their annual salary!
Don't get caught out
The EEA recommends that employers take these three, critical actions to help them to remain compliant:
1. Identify which staff are due the new rate
2. Update payroll and communicate the changes to staff
3. Ensure staff are being paid for every hour worked, including over time, and that deductions are lawful
Find out more about the NMW rises here: https://equestrianemployers.org.uk/NMW
JOIN US FOR SUPPORT
The EEA is here for you and your business. If you need support, you can get in touch with us at any time here.
If you’re not a member yet have a look at how we can help you, JOIN NOW for just £49.50.
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The EEA is the membership association for all
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