2020 Leap Year and the effect on pay
For most employees, who are paid well over the minimum wage, the additional day won’t have an impact – unless it is specifically written into a contract that it will attract extra pay.
However, employers should double check that they are paying all staff at least the National Minimum Wage (NMW) or National Living Wage (NLW) after the additional day is taken into account.
Employers could be risking a hefty fine from HMRC If they do not comply with NMW or NWC.
It is worth mentioning that underpaid salaries/wages could also mean underpaid pension contributions by employee and employer. Holiday pay may be similarly affected, as could be statutory payments.
And remember, the NMW and the NLW will increase on the 6th April 2020. The NLW for employees 25 and above will increase to £8.72; the NMW for employees between 21 and 24 will increase to £8.20.
Should you have any queries, please contact Sarah Ashton: email@example.com