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
Anthony Collins statement following Legal Aid Agency data breach
This data breach solely affects the Legal Aid Agency and is not connected to Anthony Collins. Further details and official updates can be found on the Government’s website. According to […]
Monday 19 May 2025
Read moreAnthony Collins ushers in Spring with a series of promotions
Social purpose law firm, Anthony Collins, announces 13 promotions and three lateral moves across the business, from partner level through to associate and across its business support teams.
Friday 9 May 2025
Read moreLatest webinars and podcasts
Podcast: Service charge and estate charge for registered providers
In this episode, Penny Bournes and Emma Lloyd examine how the Leasehold and Freehold Reform Act 2024 will impact private registered providers, particularly in terms of service charge administration, cost […]
Wednesday 19 March 2025
Read morePodcast: Service charge and estate charge for local authorities
In this episode, Penny Bournes and Emma Lloyd examine how the Leasehold and Freehold Reform Act 2024 will impact local authority landlords, specifically regarding service charges and estate management charges. […]
Monday 3 March 2025
Read more