The Living Wage Starts in April 2016 for Payroll Services
Starting in April 2016, as announced earlier this year, the government’s plan to introduce a National Living Wage will become a reality. The National Living Wage will be mandatory for workers aged 25 and above, and will start at £7.20 per hour.
For comparison, the current adult National Minimum Wage rate is £6.70 per hour, so as of 1st April 2016, when the National Living Wage comes in, the premium it adds is 50p per hour, for those aged 25 and over.
Just to clarify, the National Minimum Wage of £6.70 per hour will continue to apply for those aged 21-24, whilst the existing National Minimum Wage rates for those aged under 21 will also remain as they currently are (18-20 year olds = £5.30/hour and 16-17 year olds = £3.87/hour).
Our payroll services can help you IMPLEMENT the Living WAGE RATES
It is worth noting that the Government, through HMRC, can and probably will penalise employers for non-compliance with the new National Living Wage rules. Indeed, just as some employers have been named and shamed by the government for not paying the Minimum Wage, we would expect the same thing to happen with the Living Wage.
So, if you need any help implementing the new Living Wage into your payroll system, avoiding the possibility of penalties and naming and shaming, ?or would like to talk to us about all of our payroll management services, please contact us.