Living Wage or National Minimum Wage

Date Added 02.02.16

Confused as to the difference between a Living Wage and the National Minimum wage? You may well be. So, did you know that as of 1st April 2016, The National Minimum Wage (Amendment) Regulations 2016 will come into force?  These are the Regulations designed to update the National Minimum Wage.

So what does it mean?

As you are more than likely aware, the Government have been promising to increase the minimum wage and there has also been reference to a ‘Living Wage’. This has caused some confusion. The National Minimum Wage (Amendment) Regulations 2016 should help clarify this. What they say is that the National Living Wage, promised by the Government, for over 25s, actually amounts to an increase to the minimum wage. Therefore as of 1st April 2016, the new minimum wages will be:-

  • For employees aged 25 or over,  the rate will be £7.20 per hour (this is in effect the National Living Wage)
  • For employees aged  between 21 and 25, the rate will be £6.70 per hour
  • For employees aged  between 18 and 21, the rate will be £5.30 per hour
  • For employees aged under 18, the rate will be £3.87 per hour
  • For Apprentices, the rate will be £3.30 per hour

What does it mean to you?

As of 1st April 2016, the rate you pay your employees may need to go up. You will, therefore, need to ensure that your employees are paid no less than the above rates, depending on their ages, from 1st April 2016.

If you have any questions, then Talk to Tollers. We’re here for you.

Tollers’ Employment Law Team are here to help should you have any queries regarding employee monitoring and policy documents, do not hesitate to contact us on 01604-258558.

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