IGA News

The National Living Wage is Becoming Law from April 2016

The National Living Wage is Becoming Law from April 2016

26 February 2016

From 1st April 2016, the Government’s new National Living Wage will become law. This means that all workers aged 25 and over will be legally entitled to at least £7.20 per hour.

The National Minimum Wage will still apply for workers aged 24 and under.

Who will be entitled to the National Living Wage?

Generally all those who are covered by the National Minimum Wage, and are 25 years old and over, will be covered by the National Living Wage. These include:

  • Employees
  • Most workers and agency workers
  • Casual labourers
  • Agricultural workers
  • Apprentices who are aged 25 and over.

Take these four steps to be ready for the change:

  1. Check you know who is eligible in your organisation. Find out on GOV.UK’s employment status page.
  2. Take the appropriate payroll action. Find useful guidance in HMRC’s tutorials.
  3. Let your staff know about their new pay rate.
  4. Check your staff under 25 are earning at least the right rate of National Minimum Wage

You can find out everything you need to know about the new National Living Wage, including the new rates of pay, on the GOV.UK’s employers’ National Minimum Wage page.

If you have any further queries that haven’t been addressed here, please call the IGA member helpline on 0845 305 4230.