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National Living Wage Introduced
From today, 1st April 2016, there is an extra tier to the minimum wage rates (these are normally only revised every October, based on recommedations from the Low Pay Commission): the “national living wage rate” comes into force.
The hourly rates for workers are now:
| Apprentices in their first year, or apprentices under 19 | £3.30 |
| Under 18s | £3.87 |
| 18 to 20 | £5.30 |
| 21 to 24 | £6.70 |
| 25 & over (the new “national living wage rate”) [not to be confused with the “Living Wage“] | £7.20 |
The new rates will only actually apply today to staff that have a pay reference period starting today – a Friday. For some SMEs, the pay reference period will still be a weekly cycle starting typically on a Sunday or Monday, so the new rates wouldn’t then apply until the new pay cycle begins – the previous rates (all the same, except the “25 & over rate”) will continue to apply until the new pay reference period.