National Living Wage

 From April 2016, all workers aged 25 or over must be paid the new NLW of £7.20 per hour.

 This compares with the current National Minimum Wage (NMW) for this age group of £6.70 per hour.

 Workers aged less than 25 years must continue to be paid the NMW. The current rates are:

  • Apprentices £3.30 per hour
  • Under 18s £3.87 per hour
  • 18 – 20 £5.30 per hour
  • 21  to 24 £6.70 per hour

 

Above age 24 the new NLW rate must be applied.

For employers with significant numbers of aged over 24 workers this will represent a 7.5{11092aa1eab99d85b02efc0ee3c04dc4f5b81bebfc2bd8f608402c1b0eb15b7e} increase in the cost of labour. Contrast this with a reported annual increase in real wages of 2.7{11092aa1eab99d85b02efc0ee3c04dc4f5b81bebfc2bd8f608402c1b0eb15b7e} in April 2015.

 HM Treasury have created a National Living Wage website that sets out employers’ responsibilities in more detail:

 https://www.livingwage.gov.uk/?gclid=CKaI1fHStcoCFSEIwwodG5oBfQ

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