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National Living Wage - employers advised to get ready

The Department for Business, Innovation and Skills (BIS) is advising employers to begin preparing for the introduction of the National Living Wage (NLW) which comes into effect from 1 April 2016. The rate is £7.20 an hour and applies to employees aged 25 and over.

Businesses are being advised to prepare early for the changes on 1 April 2016, when the new wage will become law, and make sure they follow these 4 simple steps:

  • know the correct rate of pay - £7.20 per hour for staff aged 25 and over
  • find out which staff are eligible for the new rate
  • update the company payroll in time for 1 April 2016
  • communicate the changes to staff as soon as possible.

Business Minister Nick Boles said:

‘The government's new National Living Wage will provide a direct boost to over two-and-a-half million workers in the UK – rewarding and providing security for working people.'

‘I am urging businesses to get ready now to pay the new £7.20 rate from 1 April 2016. With just under 4 months left, there are some easy steps employers can take to make sure they are ready.'

‘By taking these measures, companies will be able to properly reward their staff and avoid falling foul of the law when it takes effect.'

Please contact us if you would like help with payroll matters.

Internet link: GOV.UK news

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