The government are implementing a National Living Wage in the UK this year. April 2016 will see an increase in hourly rate for workers aged 25 and above. For more information, please read below.
WHEN?
From April 2016.
WHERE?
The April 2016 National Living Wage will apply to people working in the United Kingdom.
HOW MUCH?
The government will introduce a new mandatory National Living Wage (NLW) for any worker aged 25 and above. It has been set at £7.20, which is rise of £0.50 above the current National Minimum Wage (NMW). This equates to an extra £910 per year in earnings for all people who are currently earning the National Minimum Wage.
"The adult NMW rate is currently £6.70. From 1 April 2016 the premium will come into effect on top of the NMW, taking the national living wage to £7.20. The NMW will continue to apply for those aged 21 to 24, with the premium added on top for those aged 25 and over, taking the total hourly rate to the national living wage."
Reference: https://www.gov.uk/government/publications/national-living-wage-nlw/national-living-wage-nlw
WHY?
The government believes that lower wage workers should benefit from the gains of growth. The Uk have record employment and the highest growth rate in the G7 countries. The National Living Wage is an integral part of sharing the growth. It reduces reliance on the government to top up wages through the benefits system.
HOW WILL MY RATE INCREASE IF I WORK FOR O'NEILL AND BRENNAN?
This will be done automatically. Anyone who qualifies will automatically have an hourly rate increase from April 2016.
