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Wage Regulations to be Implemented from 1 April 2016

The National Minimum Wage (Amendment) Regulations 2016, has been implemented to install a higher rate of pay over and above the national minimum wage currently payable to employees aged 21 and above. From the 1 April 2016 employeesaged 25 and above must be on a living wage of £7.20 an hour. 

The national minimum wage is currently £6.70 per hour and will remain in force for employees under the age of 25.

Changes to the national living wage rate are expected to be effected periodically with projections suggesting the level to be £9.00 per hour by the year 2020.

In order to inform employees of compliance with the new regulations, employers are advised to issue a formal letter to individuals affected. Such letters should be issued to the following categories of people:

  • Employees aged 25 and above who are currently being paid the national minimum wage and will see their rate of pay rise by 50p per hour.
  • Employees aged 25 and above who are being paid more than the current national minimum wage, but less than the new national living wage, and will see their rate of pay rise from its existing level to £7.20 per hour. 

If you would like any advice regarding your employees pay, please give us a call on 0113 350 4030 or email hello@scesolicitors.co.uk.

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SCE Solicitors is a boutique employment law and dispute resolution practice based in Leeds which advises clients nationwide.  Please note that the information in this blog is to provide information of general interest in a summary manner and should not be construed as individual legal advice. Readers should consult with SCE Solicitors or other professional counsel before acting on the information contained here. 

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