The National Living Wage
31st March 2016
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From Friday 1st April the National Living Wage comes into force across the UK. The new minimum hourly rate will rise for workers aged 25 and above to 7.20 per hour (that’s an extra 50p per hour) It’s great news for workers, but another hike in costs for businesses (with some small businesses forecasting redundancies and cost cutting measures to compensate for it)

Both part-time and full time workers will get the rise in pay, but you won’t be eligible if you’re in the first year of an apprenticeship.

The government is committed to increasing the National Living Wage year on year, and it’s projected to rise to at least £9 per hour by April 2020.

So what do you need to do?

Well, if you’re an employee and qualify for the increase, then basically nothing – except to check your payslip, the rest is up to your employer. You should see the increase in your pay automatically from April if you earn less than £7.20 per hour. If you see no difference in April, then you need to speak to your employer.

If you’re an employer you must:

a) Check that you know who is eligible in your company for the increase.

b) Take the appropriate payroll action.

c) Let your staff know about the increase.

d) Also make sure that anyone under the age of 25 is being paid correctly.

It’s worth noting that the National Living Wage will be enforced as strongly as the National Minimum Wage is!

If you want more information about how the National Living Wage works then visit for more details.

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