The new National Living Wage is a key part of the government’s plan to continue to move to a higher wage, lower tax and lower welfare society, building a more productive Britain and giving families the security of well-paid work.
The National Living Wage and National Minimum Wage are designed to protect low income workers and provide an incentive to work by ensuring that all workers benefit from as generous a wage as possible.
You will need to prepare early for the changes on 1 April, 2016, when the new wage will become law. You can follow these 4 simple steps:
- know the correct rate of pay – £7.20 per hour for staff aged 25 and over
- find out which staff are eligible for the new rate
- update the company payroll in time for 1 April 2016
- communicate the changes to staff as soon as possible
You can find more information on the living wage website.