The Chancellor has today made his Autumn Statement.
The National Living Wage is to be increased from to £7.20 to £7.50 per hour and this will take effect in April 2017. The National Living Wage is calculated according to the basic cost of living in the UK. Employees aged 25 or over and not in the first year of an apprenticeship are currently legally entitled to at least £7.20 per hour.
For the coming year, there is likely to be further monitoring, evaluation and review of the levels of each of the different National Living wage rates and recommendations on future increases.
If you’re an employer, you’ll need to make sure you’re taking action now to ensure that you are paying your staff correctly from April 2017, as the National Living Wage is likely to be enforced more robustly.
What do employers need to do?
To minimise the risk of employee grievances, disputes, employment claims and prosecution by HMRC:
- Check you know who is eligible in your organisation.
- Take the appropriate payroll action.
- Let your staff know about their new pay rate.
- Check your staff under 25 are earning at least the right rate of National Minimum Wage.
- Review employee’s contracts of employment and related employment policies and procedures
- Obtain support, advice and assistance from your HR and legal advisers; accountants and payroll.
Should you require advice, assistance or support on the National Living Wage or any other HR and employment law matters contact Farleys Employment Law and HR team on 0845 287 0939 or complete an online enquiry form.
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