Blog

The New National Living Wage - What you need to know

23/02/2016

The New National Living Wage - What you need to know

It has now been confirmed that the new National Living Wage (NLW) will come into force on 1st April 2016.

When the NLW comes into force, all workers who are aged 25 and over must be paid at least the NLW which is currently set as £7.20 per hour.

To prepare for the forthcoming changes, the main preparations employers should make is to  check whether any of their employees are eligible to receive the NLW, take appropriate payroll action and notify the changes to affected employees as soon as practicable.

The National Minimum Wage (Amendment) Regulations 2016 have clarified that the NLW will operate in exactly the same way as the National Minimum Wage (NMW).

It is important that everybody who is eligible is paid correctly as financial penalties will be imposed in the event of a breach of the regulations.

To ensure employers are meeting their legal obligations, in their wisdom the government decided to increase the financial penalty of a breach of either the NLW or NMW from 100% to 200% of the underpayment in respect of each employee who has been paid incorrectly.

Even an innocent mistake will be subject to a fine, so even if you think you are compliant it may well be worth doing a thorough check  now to make sure and avoid any unnecessary financial penalties. 

Angie.  You can contact Angie Dansey at angela@practical-hr.co.uk


Back to recent articles