Ask Your Expert – National Living Wage Increase What Is The National Living Wage Going Up To And Are There Any Other Increases That I Need To Be Aware Of?
National Living Wage (NLW) was introduced in April 2016 when the Goverment aimed to give employees a high enough wage to be able to afford a normal standard of living in response to the escalating prices of life’s every day necessities.
The Government plans to continuously increases the National Living Wage up to the year 2020 and on April 1st we will see the latest increase:
25 years old and above – £7.50 per hour
There are also changes to the National Minimum Wage (NMW):
21 – 24 – £7.05 per hour
18 – 20 – £5.60 per hour
16 – 17 – £4.05 per hour
Apprentices – £3.50
As an employer, you must also remember on April 1st more changes will occur. Statutory Maternity, Paternity and Shared Parental Leave will increase to £140.98 per week and the rate of Statutory Sick Pay will increase to £89.35 per week for those who are eligible.
The Government has been very clear – employers are expected to pay employees the correct National Minimum Wage and National Living Wage rates and those who do not will be named and shamed.