The government introduced the National Living Wage (NLW) for employees of 25 years of age or older, effective from 1st April 2016. From the 1st April 2017 the NLW will increase further.
Here is a summary of changes to the NLW
- Current legislation effective from 1st April 2016
- Employees aged 25 or over – minimum legal entitlement £7.20 per hour.
- Effective from 1st April 2017.
- Employees aged 25 or over – minimum legal entitlement £7.50 per hour (increase of 30p per hour).
Please note for employee’s less than 25 years of age or in the first year of an apprenticeship the National Minimum Wage (NMW) legislation still applies.
Further information regarding the NLW is found here:
Information from GOV.UK regarding employment status can be found here:
Useful HMRC guidance and tutorials can be found here:
What do I need to do?
If you are an employer it is essential that you take the following steps to ensure all of your staff are paid at the correct NMW/NLW level.
- Check who is eligible in your organisation.
- Take appropriate payroll action.
- Inform your staff of their new pay rate.
- Check any staff under 25 are earning the NMW as a minimum value.
Please note the government will continue to strong enforcement of the NMW and NLW legislation.
Please note that if you are a Sage 50 user, provided you have a valid SageCover contract/current subscription in place, Sage will make this legislation update available to you nearer the time, which you will be prompted to download.
Disclaimer: The information in this article was correct at time of publishing. Please note legislation is subject to change by HMRC. The primary information sources for this article include the Government websites.