On average, small businesses like yours spend 24% of their annual budget on their staff.

Which is why, as a business owner, you need to get staff pay right. Because if you don’t, you could find yourself with a fine or on the government’s naming and shaming list.

But what happens when a pay-related question crops up and your employee is looking to you for the answer?

You could fob them off and hope they don’t ask twice. Or you could call us and get the right answer the first time.

Here are the top three pay-related questions UK business owners have asked us this month.

“Employees keep asking if I’ll pay them the Living Wage. Do I have to?”

No, you don’t. Hourly pay rates set by the Living Wage Foundation (LWF) campaign group aren’t the same as the National Living Wage rates set by the government.

Every November, the LWF announces a recommended increase to hourly pay rates. Employers who voluntarily sign up start paying their employees the new rate by the following May.

This year, companies that sign up to the Living Wage will pay London-based employees £10.55 per hour and employees in the rest of the UK £9.00 per hour.

Is it time to boost your staff hourly rate? Call us on 0800 144 4050.

“Can I stop staff talking to each other about their salaries?”

By law, there’s nothing to prevent you introducing a pay secrecy clause to stop staff discussing pay and bonuses. But take note…

If your staff are talking about their pay because they think you’re breaching equal pay laws, you won’t be able to stop them with a clause in their contracts.

So before you introduce a pay secrecy clause, remember you could struggle to enforce it.

Want to stop salary talk? Call us on 0800 144 4050.

“My employee turns 25 this month. When do I start paying the National Living Wage?”

If you pay your employee’s salary monthly, they’ll need to receive the National Living Wage (NLW) rate from the first day of the next pay period.

So if your pay period runs from the 26th of every month and your employee turns 25 on the 15th of June, you’ll need to pay them the NLW from the 26th of June.

Their new hourly rate will be £8.21 per hour.

Remember to increase your employee’s hourly rate at the right time to avoid breaching National Minimum Wage laws. Otherwise, you could be named, shamed and fined by HMRC.

Need to know how to avoid National Living Wage breaches? Call us on 0800 144 4050.