Minimum Pay Rates

Created by Martin Parkinson, Modified on Fri, 5 Apr at 10:35 AM by Graeme Orchard

Your Influence database can help you manage and comply with Minimum Pay rates, and the UK National Living Wage (Minimum Wage). This article give an Overview


For More details about National Living Wage see the UK Government Web site
https://www.gov.uk/national-minimum-wage-rates


Each year it is likely that you may have to update or amend the minimum wage settings in your database to match the new regulations.


IMPORTANT: For 2024 Rates/Age Bands are changing.
Previously (2023) there are age bands for:
23 and Over    21-22     18-20   Under18

From 2024, these will be reduced to:
21 and Over   18-20   Under18

Because of this, you will want to make some changes to the System Setup for 2024.

Click here to jump to the relevant section of this article:   
Changes to Minimum Wage for 2024 Click Here




Contents  (Click to jump to the section)



TABLE OF CONTENTS





Age Bands (Minimum Pay Rates)

Originally introduced in April 2016, the National Living Wage specified certain age bands which were applicable. Originally these age bands were

25+Over 25
21-24Between 21-24    (In Influence listed as 'Unspecified')
18-20Under 21
18-Under 18


If the bands change, then you can amend the Table in Influence to reflect the new UK age bands.

Since 2021 the upper age band changed from 25 & Over to 23 and Over. Please see the section about National Living Wage below for changes you need to make.
NATIONAL LIVING WAGE


In Influence, these are held in a code table.  

Go to:  Maintenance > Setup > Code Tables
Select code table [Min Pay Rates - 231] and tick Extra Info [  ]


In here you can use the 'Min Rate' column to set the minimum rate allowed for workers in that age band. Using the (Warn/Update) column you can control how that is applied.

Warn/Update ColumnExplanation
1.00The system will warn users if they try to make a booking for a worker that is below the minimum rate for that age-band.
2.00 When making a booking the system will automatically update any booking that falls below minimum rate for that age-band, to become equal to the minimum rate.
3.00The system will warn users if they try to make a booking for a worker that is below the minimum rate for that age-band and then update the booking to the minimum

 


DAILY RATES - Checked vs "Minimum Wage"

From version 1.00.23.235 (or later) when using Daily Rate bookings the system will check to ensure that the Daily rate does not fall below 'Minimum Wage' based on the hours worked (Start/End/Break) - when making the booking.



NOTE: The check is done at the time the booking is MADE (Booking Entry). IF the hours are adjusted within timesheet entry, then it is up to the user to ensure that the worker still meets the legal minimum requirement for hourly rates.

{It is preferred to avoid Daily Rate bookings wherever possible}





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Rate Change Process

From time to time, the minimum pay rate (National Minimum Wage) will increase and you will want to update your Influence database to reflect this.


a) Update the 'Min Rate' held against each age band in the Min Pay Rates [231] Code table.

- Login as UserID 'ADM' (or any high priority user).

- Go to Maintenance > Setup > Code Tables, select system area as C - Contact Management, then choose the Min Pay Rates table.

- Tick the Extra Info [   ] box at the bottom, and then for each age band set the relevant Minimum pay rate.


b) (Optional) Find/Update any existing Rates that are below Minimum

You may have some RATE Cards setup within your system which are below the minimum wage, or some existing bookings (pre-booked) which will fall below the minimum wage. 


To help identify these, you may wish to install and run the two reports below:

Rates Below Minimum Wage   /   Bookings below Minimum Wage


Both these reports can be found on our support article (Click to view article)

https://influence-helpdesk.freshdesk.com/a/solutions/articles/103000144006



In the case of Rates below Minimum, you may wish to create a new Rate card, with an effective date and rates which are above the minimum at that point.


Example of a Rate card with an Effective Date


In the case of bookings below minimum you may wish to delete the bookings and then re-create them so that it will pick-up the the new minimum rates from the Rate card and/or the Min Pay Rates Table [231].


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Changes to Minimum Wage for 2024


In 2024 there are some changes coming to the Minimum Wage structure in the UK. The number of age bands is going to be reduced, and so you will need to make some changes to the setup of your system.


IMPORTANT: Before making the changes below please contact our support team (email/phone) as you will require a small code change applied to your system to ensure that the update works.
{NB: Systems on a release version after 1.00.24.038 already have this change, so there is no need to call}


Information for Influence staff:
https://influence-helpdesk.freshdesk.com/a/solutions/articles/103000276697




Step 1: Login with the UserID "ADM" (ar any other High-level login with access to the Maintenance menus)

Go to Maintenance > Setup > Code Tables.

Set the system area as C - Contact Management, then open the code table Min Pay Rates [231]


Step 2: In the Effective From column; 

Set V (23 or Over) as 2021-04-01=W     {This may already have been done from 2021}

Set <Blank> (Over 21)  as 2024-04-01=W


This is how the table should look for 2024






On 01/04/2024 Make the following changes


Go into the code table above, and make the following changes

CODEChanges Required
[Blank]  Over 21Change the description to <HIDE> Over 21
W  23 or OverChange the Description to Over 21


(We recommend you read the rest of this article and consider amending/updating any existing RATE CARDS that are below minimum. Also, for any existing bookings that extend beyond 01/04/2024, you may wish to 'Cancel/Remove the future dated bookings, then re-book tham at the new rates.)





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Changes to National Living Wage for 2021-> Onwards

In April 2021 in the UK, the age at which National Living wage applies changes from 25 years old to 23 years old. So, for this year there are some EXTRA changes which are needed if you wish to apply National Minimum Wage checks.

i) You will require a software update to version 1.00.21.042 (or later)
[You can check the version of your existing software by clicking the HELP button at the bottom right of any influence screen]


ii) You will need to add a new entry to the Min Pay Rate [231] code table.(See below)
Add a new CODE as below

CodeDescriptionEffective FromAgeMin Rate
V23 or Over2021-04-01=W23.008.91

- This assumes that the previous 'Over 25' code was set as "W"



iii) On 1st April 2021 you will want to go back into Min Pay Rates [231] and amend the description of code "W" from '25 or Over' to '23 or Over'.



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Useful Reports

There are a couple of useful reports that may help with Minimum Pay Rates. You can simply download the reports from this article and drag/drop them onto the [IQUERY] Tab of your system to install them.


1. Rate Cards with Pay Rate below Minimum

The report called IX_RATEUNDXX.Zip will prompt for a Pay Rate, and then list details of any Rate Cards setup on the system with pay rates below the entered value.


e.g. Entering £11.44 will list any Rate Cards that have pay rates under £11.44 on them.




2. Bookings Pay Rate below Minimum

The report called IX_MINWAGXX.Zip will prompt for a date and a Pay Rate, and then list details of any existing bookings on or after the seelected date with a pay rate below the entered value.


e.g. Entering £11.44 and 01/04/2024 will list any bookings after 1st April with a Pay Rate below £11.44


For these bookings you may want to Delete/Remove these and re-make the bookings at the correct Value.




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