New National Living Wage to give living standards boost to over a million workers
The Government's National Living Wage is due to be introduced on 1st April 2016 for all working people aged 25 and over, and will be set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 will continue to apply.
Over a million workers in the UK aged 25 and over are set to directly benefit from the increase, which sees the current minimum rate of £6.70 increase by 50p. Many will see their pay packets rise by up to £900 a year. This will be the largest annual increase in a minimum wage rate across any G7 country since 2009 in cash and real terms.
Take these four steps to be ready for the change:
- Check you know who is eligible in your organisation. Find out on GOV. UK’s employment status page.
- Take the appropriate payroll action. Find useful guidance in HMRC’s tutorials.
- Let your staff know about their new pay rate.
- Check your staff under 25 are earning at least the right rate of National Minimum Wage.
You can find out everything you need to know about the new National Living Wage, including the new rates of pay, on the employers’ National Minimum Wage page. If you still have any queries that are not addressed visit our Acas page or call 0300 123 1100 for further information and assistance.