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From 1 April 2016 the Government’s new National Living Wage will become law. This legislation will run alongside the National Minimum Wage, however slightly different conditions apply.
If someone is working and aged 25 or over and not in the first year of an apprenticeship, they will be legally entitled to at least £7.20 per hour. That’s an extra fifty pence per hour in their pocket, above the current National Minimum Wage limits. The Government has said it is committed to increasing the rate each year.
As an employer, you’ll need to make sure you’re paying your staff correctly from 1 April 2016, as the National Living Wage will be enforced as strongly as the current National Minimum Wage. This will no doubt also include naming and shaming employers who do not comply and as a reminder, this is what that looks like - Naming and shaming February 2016 list.
The Government has designed a calculator to help employees find out if they are eligible for the National Living Wage - calculator for workers.
Employees will be expecting to see the increase in their pay automatically from 1 April and will be encouraged to check their payslips to ensure their employer has complied.
The Government has advised employers to take their four steps of advice as follows:
You can find out everything you need to know about the new National Living Wage, including the new rates of pay, on the employers’ National Minimum Wage page. If you still have any queries that are not addressed visit the Acas page for further information and assistance, or contact Armstrong Watson Payroll and Employee Services at firstname.lastname@example.org.
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