10th February 2016

The NLW will be introduced on the 1st April 2016 and it will be compulsory for all employers to pay at least this rate to all workers aged 25 and over. The rate has initially been set at £7.20 per hour, an increase of 50p per hour from the National Minimum Wage (NMW).  The NLW is not replacing the NMW, it is in addition to it. The current rules for the NMW for those people under 25 will still apply. The current rates for the NMW can be found at www.gov.uk/national-minimum-wage-rates

Payment of the NLW is a legal obligation. An employer who fails to pay the appropriate rate to an employee aged 25 and over will be leaving themselves exposed to a claim from potentially both the employee and HMRC.

In order to prepare for this new rate we suggest that employers carry out an assessment of their employees to identify who will be affected by this change (25 years old and over). They need to take steps to inform their payroll and employees in advance of this change and should calculate an overall cost to the business. If you have any queries on the NLW please do not hesitate to contact Denise Martin, HR Officer, on 028 9032 3466.