Farmers warned to check salaries exceed the minimum wage

Farmer employers who pay their staff a salary rather than an hourly wage are at risk of being fined if they are found to be paying less than the national minimum wage.

Since 1 April 2024, that has been set at £11.44/hour for workers aged 21 and over in England.

For someone working 37.5 hours a week, that would be equivalent to a minimum salary of £22,308 a year – based on 52 working weeks.

But for someone working a 55-hour week, which is common in the agricultural sector, their salary would need to be at least £32,718 to meet the minimum wage requirement.

See also: Employment law changes 2024 – what farmers need to be aware of

“With the increase in minimum wage, farmers who are paying salaries and expecting people to work 50-60 hours a week are in serious danger of paying that person below the minimum wage,” warns Paul Harris, chief executive of recruitment and staff development specialist, REAL Success.

Mr Harris warns that it is a criminal offence for employers not to pay the minimum wage or national living wage, and anyone found to be in breach of these thresholds could face serious fines.

“Farmers need to check now if their staff are being paid the right amount of money,” he said.

However, if accommodation is provided with the job, there could be an accommodation offset, where the cost equivalent of providing accommodation contributes towards part of the employee’s overall salary.

“This is £69.93 a week, which can be added to the salary if the person is not contributing to the accommodation, and assuming the person lives in the accommodation full-time.”