From April 2016, the national living wage will increase from £6.70 to £7.20 an hour. Workers aged 25 and over and not in the first year of an apprenticeship will be legally entitled to this amount. The minimum wage will still apply for workers aged 24 and under.
The rise will take effect from the 1st of April and will be enforced as strongly as the National Minimum wage is so you must make sure you are paying your employees the correct amount.
The increase will apply to:
- Most workers & agency workers
- Casual labourers
- Agricultural workers
- Apprentices who are aged 25 & over (not in their first year)
It is important to ensure you are paying your employees the correct living wage as failure to do so can carry a penalty of 200% of the amount owed unless the arrears are paid within 14 days. Employers who don’t comply with payment will be banned from being a company director for up to 15 years.