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What does the National Living Wage mean for my business?
The National Living Wage represents one of the biggest shakeups to the UK salary system in recent times – it is the largest annual increase to a minimum wage rate since 2009.
But what’s required of you as an employer? Here is a quick rundown of the facts:
Who is eligible?
All of your employees aged 25 and over are entitled to the new rate – currently £7.20. This is expected to rise to £9 by 2020. You are required by law to pay this minimum amount, with the government likely to come down hard on any business that fails to comply.
Workers under the age of 25 are not affected, but you will still need to pay them their relevant National Minimum Wage. It’s your responsibility as employer to ensure your staff receive the level of pay they are entitled to.
Here are the current Minimum Wage rates:
* This rate is for apprentices aged 16 to 18, and people aged 19 or over who are in their first year. All other apprentices will be entitled to the relevant Minimum Wage amount for their age.
Don’t forget that Minimum Wage rates usually increase every October. We’ll keep you updated with any changes.
Isn’t there already a Living Wage?
Yes, there is – but it is completely different to this government initiative. This other scheme is completely voluntary and applies to all workers, whatever their age.
According to the Living Wage Foundation, the current amount is £8.25 per hour, rising to £9.40 in London.
Of course, as this is voluntary, it is up to you whether you pay this amount or not. Whatever you decide, you will still have to adhere to the National Living Wage.
How can ClearSky Business help?
Keeping on top of legislation changes can be a struggle for small business owners. That’s why we are on hand to take away all of the hassle and ensure you’re 100% compliant at all times.
We calculate all Minimum Wage changes on your behalf and ensure that all your employees receive accurate payments. We also keep all timesheets, payments and documents needed to meet HMRC’s reporting criteria.
This gives you complete peace of mind that all your obligations are taken care of – leaving you free to get on with running your business.
For more information, or to sign up, please call 08000 149 597 or email firstname.lastname@example.org.
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