Get ready to pay the new national living wage

Government advice to employers is to get ready to pay the new national living wage on 1 April 2016.

The national living wage rate (NLW) will be payable to workers aged 25 and over and will mean a 50p increase to those who are currently being paid the national minimum wage (NMW) of £6.70. It could mean a rise of up to £900 per year.

As part of this, it has published a four-step guide for businesses on the living wage website, asking employers to:

  1. Check who is eligible for the increase.
  2. Take appropriate payroll action.
  3. Tell your staff about the new pay rate.
  4. Check your staff under 25 are earning at least the right rate of NMW.

HMRC will have responsibility for enforcing the new NLW in addition to the NMW.

For those not affected by the NLW,  the following NMW rates apply:

  • £6.70: for 21s and over
  • £5.30: for 18 to 20-year-olds
  • £3.87: for under 18s
  • £3.30: for apprentices (the rate applies to all apprentices in year 1 of an apprenticeship, and 16-18 year old apprentices in any year of an apprenticeship)

For more information go to www.livingwage.gov.uk

 

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