Company Formations & Start-ups

National minimum wage and your responsibilities.

Changes to the National Living Wage

Posted on 11/02/2018 by Janette Allen Team

All employers need to be aware of changes to The Living Wage, which come into affect from 1st April 2018. This means that many employees will see an increase of at least 33p per hour in their wages, and a higher wage bill for employers. It also has a knock-on effect to the new auto-enrolment pensions as many more people will become eligible for the scheme.

Employers Responsibilities
  • Every employer needs to be sure that they are paying all employees aged 25 or over and not in the first year of an apprenticeship at least £7.83 per hour.
  • Employees under 25 years of age should be earning at least their appropriate National Minimum Wage rate.
  • Employers need to be aware that this is the law and will be enforced as strongly as the current National Minimum wage – meaning employers can be liable to fines and even prosecution should the changes not be implemented.

The Government have decreed that every year there will be an increase in the National Living Wage, and this will be around October of each year, so employers should expect a further increase in six months time.

Should you have any questions regarding your responsibilities as an employer, or you would like advice on payroll and PAYE, speak to us today.