Compulsory National Living Wage

Preparation for Change

Announced in 2015's Summer budget, the Compulsory National Living Wage was introduced by the government to higher the wages across the country so to bring up living standards and reduce reliance on welfare.

With over 2 million jobs created from 2010 to 2015 the government aims for the change to assist lower waged individuals to take a greater share of the growth gains.

What does this means for individuals?

As an individual this means from April 2016 that if you are 25 or over you will be granted an additional 50 pence on top of the current National Minimum Wage amount. For someone who works a full-time week it will mean an additional annual amount of £910 per year on top of the National Minimum wage.

For those under the age of 25 they are not entitled to the compulsory National Living Wage and so the current national minimum wage shall continue.

What does this means for companies?

For companies this means that you need to accommodate the additional amount for wages for those who are 25 or over. With the changes, which shall be brought in for April 16, it shall mean that for any employees on National Minimum Wage for those of 25 years or over shall need an additional amount of 50 pence per hour.