From 1 April 2016, the National Living Wage will be £7.20 an hour for workers aged 25 and over and not in the first year of an apprenticeship.

The National Minimum Wage will still apply for workers aged 24 and under.

Employers will see at least 50p per hour increase to their wages and with the Governments stated intention to set the National Living Wage at £9.00 per hour by 2020. This equates to a massive 34% increase in wage costs.

An additional consequence of this increase will be the number of employees being Auto Enrolled into workplace pension schemes.


The Government has increased the penalties imposed on employers that underpay their workers in breach of the National Minimum Wage (NMW) legislation. For pay reference periods starting on or after 26 May 2015, the basis for the maximum NMW penalty has been changed from £20,000 per notice to £20,000 per worker.

We can help you in assessing the impact of these changes on your business please contact us on 0161 653 2274.