living wage

Only weeks remain to prepare for the National Living Wage

From the 1st April 2016, the National Living Wage will become law. This means that all workers aged 25 and over and not in the first year of their apprenticeship will be legally entitled to at least £7.20 per hour, regardless of their skills and experience.

The government is putting plans into motion that means that this amount will increase every year up until 2020, where the minimum amount paid to workers will exceed £9 per hour.

For employees on a low salary, this means an extra 50 pence per hour going into the wage packet of some of the UK’s lowest paid workers and more disposable income to plough back into the economy.

However, with the Living Wage being enforced just as strongly as the National Minimum Wage, employers only have a few weeks to make amendments to their records, processes and procedures to accommodate the changes.

Employers who fail to make the changes in time and those that continue to pay the correct amounts will be subject to legal action.

Take the four steps below to get your business ready for the change:

  • Check you know who is eligible in your organisation for the Living wage increase by visiting the.GOV. UK’s employment status page.
  • Take the appropriate payroll action. Useful guides and help sheets are available on the HMRC’s website.
  • Communicate any changes to pay rates to your staff in good time
  • Check your staff under 25 are earning at least the right rate of National Minimum Wage.

For further information on the National Living Wage and what it means to businesses, click here for further information:

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Filed Under: Employers, Legal Updates

Emma Bonfiglio

About the author, Emma Bonfiglio

Managing Director at Appointments, Emma has spent 15 years building up a stellar reputation for commercial recruitment excellence across a variety of industries and sectors. There’s no staffing challenge Emma hasn’t encountered and her insight into the recruitment landscape has assisted countless clients achieve their goals over the years.

Specialising in the legislative and procedural side of business operations and through her extensive knowledge and continual training, Emma has a wealth of legal and contractual recruitment knowledge to help advise and support organisations of any size and in any industry.