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 every day that are not preparing for the changes or don’t know anything about them.
The introduction of the National Living Wage means that many employees will see at least a 50 pence per hour increase to their wages which will mean a higher wage bill for the employer and also it may 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. Sanctions can include 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.
Please share this article with your friends and colleagues as the more employers that know about these major changes.
More information can be found on the gov.uk website