The Living Wage along with Auto Enrolment, are the legislation changes that are really making a financial impact on employers this year. Yet amazingly we are still meeting business owners everyday that are not preparing for the changes or don’t know anything about them.
So it is a good idea to have a recap on The National Living Wage as it means that many employees will see at least a 50 pence per hour increase to their wages, this will mean a higher wage bill for the employer and it may also have an impact on pension contributions and who is eligible.
On 1 April 2016 every single employer will need to make sure that they are paying any employees that are aged 25 or over and not in the first year of an apprenticeship, at least £7.20 per hour. Any employee below 25 years of age should be earning at least their age appropriate National Minimum Wage rate.
What employers should remember is that this change isn’t a choice. It is the law and will be enforced as strongly as the current National Minimum Wage and by that we mean back pay, fines, prosecution, naming and shaming, etc.
Employers should also consider that the Government have made a promise to increase the figure every year, which means we may see the first increase as soon as this October.
The more employers that know about these major changes, the less likely they are to come back to us and say “you never told me and now I have been fined!”
We are running a morning seminar on Friday 4 March for anyone who would like more information and a chance to ask the experts.
If you would like to attend please contact Andrea Woods on: