On the 1st April 2016 the Government’s new National Living Wage will become law.
If you’re working, are aged 25 or over and are not in the first year of an apprenticeship, you will be legally entitled to a minimum wage of £7.20 an hour. ‘That’s an extra fifty pence per hour in your pocket’ and the Government have said they are committed to increasing this every year.
In the first year of NLW operation, employees on the lowest rates of pay will get a 10.8% wage rise*. By 2020 the National Living Wage should rise to £9.00 per hour.
Employers will need to ensure they are paying staff correctly from the 1st April as the National Living Wage will be enforced as strongly as the current National Minimum Wage.
Ahead of the introduction of the National Living Wage, the Government has issued advice for both workers and employers which can be found on the Living Wage website.
Information for Workers
Workers can find out if they are eligible for the National Living Wage by using the simple calculator on the Living Wage website. Employees should see an increase in pay automatically from April if they currently earn less than £7.20 an hour. If no increase is made, workers should speak to their Employer or visit the Governments Acas page for more information on what to do.
Advice for Employers
The Government has also issued advice for Employers on the Living Wage website. It recommends taking the following four steps to be ready for the change:
- Find out who is eligible for the National Living Wage in your organisation. You can find out more on gov.uk’s employment status page.
- Take appropriate payroll action. Guidance is available in HMRC’s online tutorials.
- Inform your staff about their new rate of pay.
- Check that your staff under the age of 25 are earning the correct rate of National Minimum Wage.
According to the Government, employers can find out all they need to know about the National Living Wage on the National Minimum Wage page. If your queries are not addressed visit the Acas page for further information and assistance.
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