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New National Living Wage – How will it impact you?

National Living Wage

In April the Government’s new National Living Wage will become law.

Employees aged 25 or over and not in their first year of an apprenticeship, will be legally entitled to at least £7.20 per hour. That’s an extra fifty pence per hour. The Government is committed to increasing this every year.

If you are an employer, you’ll need to make sure you’re paying your staff correctly from 1st April 2016, as the National Living Wage will be enforced as strongly as the current National Minimum Wage.

The suggestion that some employers have focused on recruiting under-25s in anticipation of this new higher rate have just been scuppered by the Chancellor announcing that with effect from October 2016 the minimum wage paid to under-25s, which will see workers aged between 21 and 24 will get an increase of 25p per hour.

Budget Living WageThe 21-24 age bracket will rise to £6.95 per hour. Those aged 18 to 20 will see the minimum wage grow by 4.7 per cent to £5.55 an hour (currently £5.30) and for 16-17 year olds it will reach £4 an hour, up from £3.87.

If you would like further information or advice regarding this issue or other HR Fundamentals please give Sally or Sarah a call on 01844 216290 or email