New National Living Wage comes into force in April 2016

In the 2015 summer budget, it was announced that a National Living Wage (a re-branded mash up of the National Minimum Wage and the Living Wage) for workers aged 25 and over will be introduced from April 2016.

What is the new minimum working wage?

Initially, it will be set at £7.20 per hour. This is an increase of 70p per hour from the current minimum working wage for adults.

Why is it coming into force?

The idea behind the new wage is that it’s high enough for workers to have a normal standard of living.

However, critics say that while it could mean a pay rise for millions of workers, it could also cost thousands of jobs. As it’s the employer’s responsibility to pay for the wage increase.

The Government has tried to offset this slightly in the budget by reducing corporation tax and potentially reducing the amount of national insurance contributions employers pay for their employees.

What this means for employers

You need to make sure you’re paying your employees the new minimum working wage from 1st April 2016. The National Living Wage will be enforced as strongly as the current National Minimum Wage.

It will be some time until the impact of the introduction of a National Living Wage is seen. But given that it doesn’t affect workers aged 24 and under, we could see a lot of younger employees being offered jobs.

Need advice? Get in touch today

Please call Ted Flanagan on 01482 324252.

Or email eff@gosschalks.co.uk

You can find out more about our Employment Law services here.

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