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On 1st April 2016, the National Living Wage comes into force

Posted by: Megan Troster

From 1st April employers across the UK will be required to implement the National Living Wage (NLW). This means that all workers aged 25 and over will be paid a minimum of £7.20 an hour.
(To know more click here)  

According to the REC (Recruitment Employment Confederation) this figure is intended to rise incrementally and is expected to exceed £9 an hour by 2020 as part of the Government’s plan to move towards a higher wage, lower tax and lower welfare society.


What is the difference between the living wage and the national minimum wage?

The National Living Wage is an informal benchmark, currently calculated by the Centre for Research in Social Policy at Loughborough University and is based on the amount an individual needs to earn to cover the basic costs of living.

The National Minimum Wage (NMW) is a legally enforceable minimum level of pay set by the Business Secretary each year on the advice of the Low Pay Commission and enforced by HM Revenue and Customs (HMRC).

The NMW will still apply to 4 separate tiers below the NLW, set at £6.70 for 21-24-year-olds, £5.30 for 18-20-year-olds, £3.87 for under 18s, and £3.30 for apprentices (either under 19 or in their first year of an apprenticeship).

A recent survey conducted for the Department for Business, Innovation and Skills found that 93% of UK employers still believe the NLW is a good idea:




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