A guide to the National Living Wage

From 1st April, 2016 all employers will need to comply with the new National Minimum Wage regulations.

This will apply to workers aged 25 and over and will increase their hourly rate to £7.20 per hour.

Will the National Minimum Wage still apply?

The National Minimum Wage rates will continue to apply for those under the age of 25:

Standard Adult Rate – (For Workers aged 21-24) £6.70/hour

Development Rate – (For workers aged 18-20) £5.30/hour

Young Workers Rate – (For workers aged 16-17) £3.87/hour

Apprenticeship Rate – £3.30/hour

From April 2016 HMRC will have responsibility for enforcing the new National Living Wage as well as the National Minimum Wage and will take firm action where an employer fails to pay the correct rate.

The government is committed to increasing the National Living Wage annually with plans to further increase the new wage to £9 per an hour by 2020. This rise will effectively require 6% year-on-year increases.

If you would like any further clarification please contact Louise Addison in our Employment Team on 01302 341 344.

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