Fair pay for a fair day’s work
1 March 2016
The Government’s National Living Wage (NLW) campaign is designed to ensure employers are aware of, and comply with, the new legal requirement from 1 April this year (2016) to pay the National Living Wage and to ensure eligible workers know that they are entitled to the National Living Wage and what to do if they are not being paid the correct amount.
The Government’s message is that as well as workers being better off, employers who pay a fair wage do so because they value and respect their employees. The benefits they report include having highly motivated and hardworking employees who enjoy what they do. We all benefit from a stronger workforce, earning more and being less reliant on welfare. It is anticipated that the increased wages bill will be most felt in the retail, hospitality and cleaning sectors.
From 1 April this year (2016) workers aged 25 and over who are not in the first year of an apprenticeship will be legally entitled to the National Living Wage. This represents a pay rise of 50p per hour on the National Minimum Wage currently at £6.70 an hour age 21 and over since 1 October 2015. The current National Minimum Wage rates will still be applicable to workers age 24 and under. For more information on Minimum Wage the web site is https://www.gov.uk/national-minimum-wage-rates .
The new National Living Wage will be effective from 1 April this year (2016) so employers and business owners of all sizes should be focusing on what they should do to prepare their business.
The Government’s National Living Wage campaign sets out four simple steps that they want employers to take - as soon as possible - to make sure that they are ready. So over the next few weeks employers should prepare for 1 April 2016 by:
• Knowing the correct minimum rate of pay – £7.20 per hour for staff aged 25 and over.
• Finding out which members of your staff are eligible for this new rate.
• Updating the company payroll in time for April 1, 2016.
• Telling staff about any changes as soon as possible.
The Low Pay Commission’s remit has been broadened to look after the arrangements for the new National Living Wage, as well as the existing National Minimum Wage. The Commission makes recommendations annually to Government on the level of wages and it is intended that the National Living Wage will be around £9 for London rates of pay by 2020.
More information is available on the Government’s website www.livingwage.gov.uk and the key hashtags for the campaign are #NationalLivingWage, #NLW, #4steps.