With effect from the 1st April 2016, the new National Living Wage legislation takes effect. Employees aged 25 or over will become legally entitled to at least £7.20 per hour. This legislation will be enforced as strongly as the current National Minimum Wage, and we can expect to see employers who fail to comply being named publicly.
You should already have your employee’s dates of birth in your payroll software if you administer it yourself. If not, you need to obtain this information urgently. You will need to review their current wage levels and determine whether they need to be adjusted to comply with the above legislation. Check also with any staff on a salary that their salary level complies for the number of hours they work.
The new Minimum Wage rates from 1 April will be:
25 and over – National Living Wage.
21 to 25
18 to 20
For apprentices aged 16 to 18 and those aged 19 and over in their first year. All other apprentices are entitled to the National Minimum Wage for their age.
The National Minimum Wage rates took effect from October 2015.
A worker on the National Living Wage working 35 hours per week would have a minimum gross wage of £252 per week. Effectively any staff on the National Minimum Wage who are entitled to the National Living Wage will receive a 7.5% pay rise from the 1st April.
If you have any questions, or require advice on the above, please do not hesitate to contact me.