MORE than 80 per cent of businesses are unaware of the fines they could risk for not paying the minimum wage as it rises by 20p an hour today, it is claimed.

A survey by the Department for Business, Innovation and Skills found 81 per cent of bosses in the south west did not realise they could be fined £20,000 per worker for failing to pay the wage.

There are estimated to be 110,000 people in the south west being paid on or below the national minimum wage.

The wage rises three per cent to £6.70 an hour for over-21s from today, although the wage for workers aged 18-20 will only reach £5.30, with under-18s paid £3.87. Apprentices see their minimum wage rise 21 per cent to £3.30.

The wage will rise to £7.20 for over-25s in April.

But many low-paid households could lose money from cuts to working tax credit.

Tom Doherty, director of the HR Dept in Bournemouth, said he did not know of any clients planning to cut staff over the issue.

“A lot of small businesses are employers are being affected by pensions auto-enrolment and a few tribunal cases coming from Europe on things like travel time, holiday pay and overtime and commission,” he said.

“Some employers are likely to be affected by it but the reality is more people are likely to be affected by the increase to the National Living Wage which goes up to £9 by 2020."

Amy Cousineau Massey, employment law solicitor with Coles Miller in Dorset, said: “The National Minimum Wage is enforced by HM Revenue and Customs and they can be extremely robust.

“The onus is on the employer to maintain accurate time sheets and prove that they are paying the correct rate when the National Minimum Wage rises each year.

“Employers must also ensure that – as younger employees grow older – they are paying them at the right National Minimum Wage rate for their age group.”

Breaches of the National Minimum Wage are dealt with at Employment Tribunals and employers can be named and shamed by government.

Neil Eames, development manager for the Federation of Small Businesses in Wessex, said: “The introduction of the new National Living Wage is the most radical change to wages in recent years, introducing a completely new wage bracket for the over 25s.

“As well as focusing on enforcement, the government must clearly and proactively communicate the change to employers – ensuring businesses fully understand what they need to do and when."