When does it apply from?
The calculation date for the applicable rate of pay for each pay reference period is the first day in the pay reference period. This means that the National Living Wage (NLW) will take effect from the first pay reference period that begins on or after 1 April 2016. A pay reference period is a month or shorter if you pay your workers by reference to a period that is shorter than a month (for example weekly). For some workers therefore the implementation of the NLW can be slightly delayed.
Future increases?
As you will be aware, the usual increases to the National Minimum Wage (NMW) take place on 1 October each year but it was indicated in the budget that from April 2017 the increases will be aligned so all increases will take place from 1 April each year. However there will still be an increase to the NMW (as opposed to the NLW) in October 2016 to £6.95 for those aged 21 or over.
New guidance
The Department for Business, Innovation and Skills has also issued new guidance on calculating the NMW. Sadly, this guidance contains nothing new on the fraught issue of whether all time spent carrying out a sleep-in shift should count for the purposes of calculating whether the national minimum (or living) wage has been paid.
Funding the increase
We have been helping Employers prepare for the introduction of the NLW in a number of ways including:
- Implementing cost saving measures;
- Reviewing pay structures and benefits; and
- Re-negotiating contract prices with commissioners.
If you require further information or would like to discuss implementing changes within your organisation, please contact Faye Rush or Matthew Wort.
Latest news
New code puts complaint handling in the spotlight
he updated Housing Ombudsman’s (HO) Complaint Handling Code (the New Code) will become a statutory requirement on 1 April 2024 and will bring a significant step change for registered providers (RPs).
Monday 25 March 2024
Read moreAnthony Collins appoints returning partner as new head of funding
Specialist law firm Anthony Collins (AC) has appointed a new head of funding, returning partner, Jon Coane. Jon brings with him over 25 years of experience as a social impact […]
Wednesday 13 March 2024
Read moreLatest webinars and podcasts
PODCAST: 12.07% holiday accrual is back… But not for everyone!
In the podcast we will outline the new Working Time Regulations legislation in detail, noting when the provisions coming into force, whilst also providing practical examples and guidance for employers across all sectors.
Friday 1 December 2023
Read moreRenters Reform Bill webinar – June 2023
The Renters Reform Bill proposes a seismic change to housing management practices, abolishing assured shorthold tenancies and 21 notices entirely and making changes relating to rent increases, pets, possession grounds and more.
Friday 18 August 2023
Read more