“Make sure we’re ready for the National Living Wage” – this needs to be pretty high on the HR team’s task list.
It hasn’t escaped anyone’s attention that in April, we see the introduction of the National Living Wage (NLW) replacing the National Minimum Wage (NMW) and requiring employers to pay £7.20 an hour for employees aged 25 and over and for those full time employees currently on the NMW of £6.70, this effectively represents an increase in basic pay of about £1,000.
Working on the basis that you’ll never please everyone all the time, there will be many employees for whom this is great news but there will also be groups who will say it doesn’t go far enough and that there is a difference in the cost of living in and out of London but, to be fair, the NMW made no distinction. Not only does the NLW prescribe that we need to pay £7.20 from April, we know that the target is £9 by 2020. Read More