Author: JW / / Latest News
The Living Wage along with Auto Enrolment, are the changes that are really making an impact on employers this year. Yet business owners are still not preparing for the changes or don’t know anything about them.
The National Living Wage 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, also it may have an impact on pension contributions.
On 1 April 2016 every employer will have to make sure that they are paying every employee that is aged 25 (and over and not in the first year of an apprenticeship), at least £7.20 per hour. Any employee aged below 25 should be earning at least their age appropriate National Minimum Wage rate.
Employers must remember that this change isn’t a choice. It is the law and will be enforced as strongly as the current National Minimum Wage. Therefore not following this can result fines, prosecution, naming and shaming, etc.
Employers should be aware that the Government have made a promise to increase the figure every year, which means the first increase could be as soon as this October.