There will be a new National Living Wage for workers aged 25 and above, set at £7.20 per hour from April 2016, with the intention that it will reach £9 per hour by 2020.
The new National Living Wage will apply for pay reference periods starting on or after 1st April 2016. The pay reference period is usually the period of time for which a worker will be paid. So, for example, for weekly paid employees working a week in arrears, the first pay period that needs to be paid at the NLW will be for the week 4th to 10th April, payable on 15th April 2016.
With HMRC’s policy of naming and shaming offenders it’s worth bearing in mind that the penalties for non-compliance are high, so please review all your workers age and increase their pay accordingly.
