Firms urged to check over 25s receive the new living wage

By Andrew Harbison, CA Today

30 March 2016

Employers must ensure that all eligible workers over the age of 25 are receiving the new National Living Wage from 1 April 2016.

From Friday, all workers aged over 25 and who are not self-employed, in the first year of an apprenticeship, or volunteering, will receive £7.20 an hour - a 50p increase on the minimum wage.

The increase will result in many full time workers receiving around £900 a year extra in their pay packets. A full time employee earning the new National Living Wage will receive an annual income of £13,104.

The National Living Wage on the minimum wage was first announced by Chancellor George Osborne in July 2015.


Download: Infographic - The National Living Wage PDF [118 KB]

“The new National Living Wage is an essential part of building the higher wage, lower welfare, lower tax society that Britain needs and it’s great to see that over a million people will see their living standards boosted when this comes into force on 1st April” the Chancellor said in January.

ICAS has been paying all of its staff the National Living Wage as determined by the Living Wage Foundation since 1 January 2014, becoming an accredited employer with them in May 2014. ICAS is one of only 500 accredited Living Wage employers in Scotland.

The Living Wage Foundation disagrees with the rate set by the government, setting the figure at £8.25 for the UK and £9.40 for London. Their website states the difference is because the “government rate is based on median earnings while the Living Wage Foundation rate is calculated according to the cost of living.”

Several businesses, including Next and Costa Coffee owner Whitbread, have warned that they will need to raise prices to offset the cost of introducing the National Living Wage.

The government has published information on the living wage website for employers and employees about the change.


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