Confused over National Living Wage? You may have seen adverts on TV talking about the new National Living Wage and still be wondering if it affects you and your business.
Here are the key points in summary:
1. This NLW is a new statutory rate for employees and workers over the age of 25
2. It comes into effect on 1 April 2016
3. The rate will linitially be £7.20 per hour but like the National Minimum Wage (NMW) it will increase each year – we’ll keep you updated
4. It is anticipated that the NLW will be £9 per hour by 2020
5. The rules for NLW are the same as NMW – this means that allows employers will usually be compliant with NLW (and NMW) if average pay across all hours worked is at or above the required rate – this is an important point in businesses that pay sleep-in rates or on-call rates – this can be a complex area and we’d recommend getting advice to ensure you are compliant
6. The NLW (which is a statutory requirement) is in no way connected to the Living Wage rates recommended by the Living Wage Foundation in their campaigns
Any questions? Get in touch today
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