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Are you ready for the National Living Wage?
According to a government report published in December the majority of employers across the UK were not yet ready for the introduction of the national living wage, despite having only a few months until the rate becomes a legal requirement.

At that point just 39% of the 1000 businesses polled had communicated the upcoming changes to staff, and less than half (45 per cent) had updated payroll to take the increased rate into account.

From 1 April 2016, the hourly rate for those aged 25 and over will rise to £7.20, an 11% increase on the current mandatory pay rate.

Despite 63% of employers stating they knew who in their business should be receiving the new minimum wage, the majority of the organisations surveyed had not made preparations to implement the changes at that point. We now have fewer than three months to go so if you have not put the necessary actions in place, now is the time to do prepare for the new minimum wage by understanding the correct rate of pay and eligibility of staff; updating the company payroll in time for 1 April and communicating the changes to employees as soon and as widely as possible. This may also impact on higher pay grades too as the gap between those on the lowest rates narrows.
Posted on 19 Nov 2016


Cherington HR Limited is registered in England and Wales Company No. 5780092. VAT No. 879 0946 64
Registered Office: Cherington House, Mulberry Drive, Upton upon Severn, Worcester, WR8 0ET, England

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