The New National Living Wage

National Living Wage

The New National Living Wage

On 1st April 2016, the Government’s new National Living Wage will become law.

An employed person aged 25 or over (and not in the first year of an apprenticeship) will be legally entitled to at least £7.20 per hour. This is an extra fifty pence per hour above the current national minimum wage for workers (aged 22 and over) and it is estimated over a million workers will benefit from this change. The Government has also stated that it is committed to increasing this every year.

Companies will need to ensure that they are paying their staff correctly as the National Living Wage will be enforced as strongly as the current National Minimum Wage. The key points for employers to consider are:

  • Check who is eligible in your organisation and take the appropriate payroll action well in advance of the 1st April 2016.
  • Communicate clearly with your staff about their new pay rate.
  • Check your staff under 25 are earning at least the correct rate according to the National Minimum Wage.

Whilst this represents a major change for UK businesses, there are advantages to the rate rise that employers can benefit from. Amongst these are cultivating a positive and credible reputation for your company in addition to the positive effects higher wages can bring – such as low absenteeism and employees feeling more recognised and valued for the work they do.

Over the last 6 years, Intro Personnel has worked hard to build up a large number of excellent working relationships with our wide client base which stretches across many business sectors. We will continue to work closely with both new and our existing customers to ensure that they continue to have as much support as possible in implementing these changes.

For further information or guidance on any of the above, please contact the Intro Personnel team on 01782 413307.

Useful links:

More information on the National Living Wage can be found at-

https://www.gov.uk/government/news/new-national-living-wage-to-give-living-standards-boost-to-over-a-million-workers

Details of the current National Minimum Wage guidelines are as follows:

https://www.gov.uk/national-minimum-wage-rates