The National Living Wage – a reminder of the changes.

Don’t be named and shamed after April 1st!

This is a reminder that the National Living Wage will be introduced on 1 April 2016. Could this affect your workforce?

In our recent article The New National Living Wage – is it a good thing? we highlighted the changes to hourly rates for workers aged 25 years and over and the mixed response from the business community. As we near the 1st April, we thought it would be useful to recap on the main points.

Workers aged 25+ years will be entitled to receive the new mandatory National Living Wage of £7.20 per hour. Any business paying less than this will be named and shamed publicly and also subjected to financial penalties.

For workers under the threshold of 25 years, the existing National Minimum Wage will continue to apply as usual: 

  • Workers aged 21 to 24 are entitled to receive the existing national minimum wage of £6.70 per hour;
  • Workers aged 18-20 are entitled to receive £5.30 per hour;
  • Under 18 year-olds should be paid a minimum of £3.87; and
  • Apprentices aged 16-18 and those aged 19 or over in their first year of apprenticeship should receive           £3.30 per hour (all other apprentices are entitled to the National Minimum Wage for their age).

Should you have any questions or require any advice on these changes please do not hesitate to contact Nicola Cockerill or our Employment Law team on 01733 882800.

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This article has been prepared for general interest and information purposes only; it does not constitute legal advice and should not be relied on as such. While all possible care has been taken in the preparation of this article, no responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by the firm or the authors.