Call us on:  0808 172 93 22

National Living Wage FAQs

When does it come into force?National Living Wage - FG Solicitors

1 April 2016.

How much is it?

£7.20 per hour.

Is there a small employer exemption?

No. All employers will be obliged to pay the National Living Wage.

Who does it apply to?

Workers aged 25 or over.

Where has this come from?

It falls under the National Minimum Wage legislation.

Is it the same as the Living Wage? 

No, organisations must pay workers the National Living Wage, but the Living Wage is voluntary, set by the Living Wage Foundation and calculated according to the basic cost of living in the UK.  The current UK Living Wage is £8.25 per hour and the current London Living Wage is £9.40 per hour.

What payments can be taken into account when deciding if the correct rate is being paid?

There are a number of elements of pay that can be taken into account. These include basic pay, bonus, commission, piecework and accommodation allowances.

Are pension payments made by the employer taken into account when deciding if the correct rate is being paid?

No.

What about tips?

Tips cannot be taken into account when calculating whether the correct rate has been paid to the worker. This is even if the tip is paid through the payroll system.

Is there an easy way of checking if I am paying the correct amount?

The Government has published an online calculator which can be used by employers and employees to determine whether the correct amount is being paid. This can be accessed at:

https://www.gov.uk/am-i-getting-minimum-wage

What happens if I fail to pay the correct amount from 1 April 2016?

The rates are enforced by the HMRC and those employers who fail to pay the correct rates will face financial penalties.

Contact Details

For more details about the National Living Wage please contact a member of our Employment Law team:

fgmedia@fgsolicitors.co.uk

+44 (0) 808 172 93 22

This update is for general guidance only and does not constitute definitive advice.

Updated: by FG Solicitors
Call us on:  0808 172 93 22

NATIONAL LIVING WAGE FAQS

When does it come into force?National Living Wage - FG Solicitors

1 April 2016.

How much is it?

£7.20 per hour.

Is there a small employer exemption?

No. All employers will be obliged to pay the National Living Wage.

Who does it apply to?

Workers aged 25 or over.

Where has this come from?

It falls under the National Minimum Wage legislation.

Is it the same as the Living Wage? 

No, organisations must pay workers the National Living Wage, but the Living Wage is voluntary, set by the Living Wage Foundation and calculated according to the basic cost of living in the UK.  The current UK Living Wage is £8.25 per hour and the current London Living Wage is £9.40 per hour.

What payments can be taken into account when deciding if the correct rate is being paid?

There are a number of elements of pay that can be taken into account. These include basic pay, bonus, commission, piecework and accommodation allowances.

Are pension payments made by the employer taken into account when deciding if the correct rate is being paid?

No.

What about tips?

Tips cannot be taken into account when calculating whether the correct rate has been paid to the worker. This is even if the tip is paid through the payroll system.

Is there an easy way of checking if I am paying the correct amount?

The Government has published an online calculator which can be used by employers and employees to determine whether the correct amount is being paid. This can be accessed at:

https://www.gov.uk/am-i-getting-minimum-wage

What happens if I fail to pay the correct amount from 1 April 2016?

The rates are enforced by the HMRC and those employers who fail to pay the correct rates will face financial penalties.

Contact Details

For more details about the National Living Wage please contact a member of our Employment Law team:

fgmedia@fgsolicitors.co.uk

+44 (0) 808 172 93 22

This update is for general guidance only and does not constitute definitive advice.