As from the 1st April 2016 the Government’s new National Living Wage (NLW) will become law.
So what does this mean for employers?
Employment solicitor, Paula Stuart, explains that the National Living Wage has, in effect, added a new tier to the National Minimum Wage rates. The NLW will apply to workers who are 25 or over and not in the first year of an apprenticeship. They will be entitled to at least £7.20 per hour, which is 50p more than what they are currently receiving.
What should employers do?
In readiness for the change, employers should review their payroll to ensure that workers under 25 are earning the correct rate of pay and those over 25 benefit from the new National Living Wage.
The new minimum wages from the 1st April will be:
|Apprentices *||£3.30 per hour|
|Under 18’s||£3.87 per hour|
|18 – 20||£5.30 per hour|
|21 – 25||£6.70 per hour|
|25 and over (NLW)||£7.20 per hour|
*The rate for apprentices is for those aged between 16-18 and those aged 19 or over who are in their first year apprenticeship. All other apprentices are entitled to the National Minimum Wage for their age.