How will the national living wage impact my business?

Posted by Jean Armstrong 17 February 2016 07:30 AM

We are getting lots of questions about the up and coming living wage changes along with Auto Enrolment so thought we would cover some of the key headlines in this 2 minute to read blog;

The Living Wage along with Auto Enrolment, are the big legislation changes that are really making a financial impact on business owners this year. Yet amazingly we am still meeting business owners every day that are not preparing for the changes or don’t know anything about them!!

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What is the National Living Wage?

Quite simply 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 you the employer and also it may have an impact on pension contributions and who is eligible.

When does it kick in?

On 1st 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.

Will the National Wage really impact me?

What all 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. 

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Topics: Business Owner Legislation Changes