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Introduction of The National Living Wage

From April 2016 the government will be introducing the National Living Wage which will be one of the biggest increases in minimum wage payments seen to date. The government is wanting to move away from the current scenario of a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.

What this will mean is that from 1 April 2016, the minimum wage for employees over the age of 25 will be £7.20 per hour excluding statutory holiday pay (so £8.07 inclusive of the statutory 28 days of holiday). This is an increase of 0.50p on the current minimum wage rate. Employees under the age of 25 will still be paid at the National Minimum Wage of £6.70 per hour excluding statutory holiday pay.

This will have a big impact on businesses who employ staff in minimum wage-paying roles such as customer service and reception roles and they must be aware of these changes in order avoid large penalties from the government. 

This is good news though for employees who are aged over 25 and are earning at the minimum wage level!

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