[20.03.16]
George Osborne’s National Living Wage comes into force this week, a policy that will have a significant impact on many employers.
The National Living Wage requires all employers to pay all workers aged 25 and over at least £7.20 per hour.
As of 1st April 2016 you will need to make sure you are paying your staff correctly, as the National Living Wage will be enforced as strongly as the current National Minimum Wage. It doesn’t matter how small the business, they still have to pay the minimum wage and the National Living Wage. In addition, the Government is committed to increasing the National Living Wage every year.
Make sure you are ready:
- Ensure you know who is eligible in your organisation.
- Take the appropriate payroll action.
- Let your staff know about their new pay rate.
- Check any staff under 25 are earning at least the correct rate of National Minimum Wage. The minimum wage rate depends on a worker’s age and if they’re an apprentice.
HM Revenue and Customs (HMRC) officers have the right to carry out checks at any time and ask to see payment records. They can also investigate employers, following a worker’s complaint.
It is the employer’s responsibility to keep records proving that they are paying the minimum wage – most employers use their payroll records as proof. All records have to be kept for 3 years.
If you would like further information regarding the introduction of the National Living Wage and the impact that it will have on you as an employer, please contact Jackie or Andrew.
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