April 2016; New National Living Wage

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As the new tax year approaches, if you have not done so already, its time to start understand the impact of one of the biggest increases to minimum wage in the G7 countries in the last decade. From April 2016 the government is introducing the New National Living Wage of £7.20 per hour. This is an extension of the National Minimum Wages and is specifically for workers aged over 25. The changes will mean a pay increase of £0.50 per hour for workers aged over 25 who are currently earning the minimum rate.

Planning for the Changes

  1. Assess your workforce: Understand who the changes will impact, remember to consider the knock on effect on employees paid above minimum wage.
  2. Understand limitations of your payroll software / payroll bureau provider: Compliance is as ever a priority. You need to understand how you will continually assess your workforce and ensure compliance not only from 6th April 2016 but ongoing as your younger workforce becomes eligible for the new National Living Wage.
  3. Forecast costs of the changes: Understand the cost of the changes for your business. The changes for a single worker currently on NMW working a 40 hour week would equate to an increase cost of £1183.52 inclusive of Employers NI.
  4. Inform your workforce of the changes: Communicate the changes with your workforce so they understand the changes and the impact on them.

Need Assistance from CE Back Office?

We offer free workforce assessment for all of our clients and continued assessment as standard. Sign up for a free consultation to find out more now.


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