With the introduction of the highly publicised National Living Wage it is not surprising that people are confused about how much they should be paid per hour.
For workers under the age of 25, the National Minimum Wage rates will apply:-
- Aged between 21 and 25 – £6.70 per hour;
- Aged between 18 and 20 – £5.30 per hour;
- Under the age of 18 – of £3.87 per hour; and
- Apprentices under the age of 19 and in their first year of training – £3.30 per hour.
However, from 1 April 2016 workers over the age of 25 are entitled to receive £7.20 per hour. This is known as the National Living Wage.
In response to this increase, the Living Wage Foundation say this rate is based on what the Government feel companies can afford to pay, rather than what it actually costs people to live. The Foundation encourages companies to become accredited volunteers which will then oblige them to pay their workers £8.25 per hour, provided that the worker is not undertaking training. This is an increase of £1.05 per hour on the National Living Wage set by the Government. It is important however to highlight that companies are not required to become accredited volunteers and it is their discretion if they choose to do so.
Whilst many companies already pay the National Living Wage to its workers, others warn that they will need to cut back on overtime and recruitment in order to afford the new rate. Time will tell as to how effective this increase will be, however, if you are concerned that you are not being paid the correct hourly rate, please contact a member of our Employment Team who will be happy to help:-
Mark Hirst (mhirst@bromleys.co.uk), Nicholas Clough (nclough@bromleys.co.uk) or Rachael Frankland (rfrankland@bromleys.co.uk) or telephone us on 0161 330 6821
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article