The new National Living Wage will come into effect on April 1st 2016 - this is the new minimum pay per hour most workers are entitled to by law.
The level is set nationally so all UK businesses are affected if you have one or more employees over the age of 25. The current National Minimum Wage for those under the age of 25 will continue to apply. The National Living Wage covers:
- most workers and agency workers
- casual labourers
- agricultural workers
- apprentices who are aged 25 and over.
The new level is set at £7.20 per hour and penalties for non-compliance are severe, with fines up to £20,000 and also the chance that business owners could be banned from being a company director for as long as 15 years.
If you're unsure about the implications for your business or you think you will need assistance making the required changes to your payroll, call Advance Accountants for assistance. We can help you to work through these changes and provide just the right level of support that your business needs.
Our experts are here to help, and we'll be happy to arrange an informal chat with a member of your team to discuss the requirements for your business.