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Are you ready for the National Living Wage?

Mar 02, 2016

On 1 April 2016 the National Living Wage comes into effect. All workers aged 25 and over are legally entitled to at least £7.20 per hour. To ensure you are ready for the change:

  • Check you know who is eligible in your organisation. 
  • Take the appropriate payroll action. 
  • Let your staff know about their new pay rate.
  • Check your staff who are under 25 are earning the right rate of National Minimum Wage 

The current National Minimum Wage for those under the age of 25 will continue to apply. Current Rates (from October 2015):

  • Apprentice* - £3.30
  • Under 18 - £3.87
  • 18 to 20 - £5.30
  • 21 and Over - £6.70

*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year.

Penalties for failure to comply with the National Living Wage
The penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days. The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.

If you require any further information or assistance with regards to National Living Wage or National Minimum Wage, please contact Ezra Moffatt on 0333 400 7920.