The Living Wage along with Auto Enrolment, are the legislation changes that are really making a financial impact on employers this year. Yet we are still meeting business owners every day who are not preparing for the changes or don’t know anything about them. That is why we are here to help.
The National Living Wage will see at least a 50 pence per hour increase to wages for many employers. This will mean a higher wage bill for the employer and also it may have an impact on pension contributions and who is eligible.
On 1 April 2016 every single employer will need to make sure that they are paying any employees that are aged 25 or over and not in the first year of an apprenticeship, at least £7.20 per hour. Any employee below 25 years of age should be earning at least their age appropriate National Minimum Wage rate.
What employers should remember is that this change isn’t a choice. It is the law and will be enforced as strongly as the current National Minimum Wage meaning back pay, fines, prosecution, naming and shaming so you really must get prepared now for this change.
Employers should also consider that the Government have made a promise to increase the figure every year, which means we may see the first increase as soon as this October.
How will the Living Wage effect your business? If you are concerned or have any questions about Payroll in general, please do not hesitate to contact us at McDade Roberts. We have a dedicated payroll department and can also help you with business strategy to help you face changes like this head on.
http://www.mcdaderoberts.co.uk/services/services-for-business/payroll