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National Living Wage and National Minimum Wage

April 1, 2016 11:08 am Published by Leave your thoughts

The new (and we still think unhelpfully named) National Living Wage comes into force on 1 April 2016.  It applies to all working people aged 25 and over (but not if they are in the first year of an apprentice programme).  The rate is £7.20 per hour.

The current National Minimum Wage for those under the age of 25 will continue to apply.

Remember that you this is new law, and therefore you must pay people at the correct rate.  You may wish to make a business decision about whether you apply the National Living Wage rate to a wider group than those it legally applies to.

There are are many long documents that you can read related to this, here is one.  Or you can look at this easy government website that sums it up nicely and has some useful FAQs.

This is going to be an easy area to slip up in – and already we’ve had clients telling us that employees are directly asking when their pay will increase.  Remember you pay system will need another trigger to uplift employees when they reach age 25 for the Living Wage rate to apply

Finally, be clear which you are dealing with and talking about – the Living Wage and that National Minimum Wage are increasingly used interchangeably, but as things stand, they are not the same thing.

If you have any questions at all, give us a call on 0845 463 3231. We can help with queries related to this including policy positions with regard to how to apply the change.  We’re in the office on 0845 463 3231

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