In this blog we give answers to some of the most common questions surrounding the national minimum wage which was brought in from April 1st 2016.
Q: What is the National Living Wage?
A: It is calculated by academics as the level of pay that would give workers sufficient money for a basic standard of living.
Q: How much is the national living wage?
A: From April 1st 2016 the NLW is £7.20 an hour.
Q: What is the difference between the Living Wage and the Minimum Wage?
A: According to the BBC, the technical answer is that the living wage will act as a top-up of the minimum wage for workers aged 25 and over – as it is compulsory it has left many people feeling that this is nothing more than a re-branded minimum wage (BBC news).
Q: Why has the national living wage become a legal requirement?
A: The NLW has been introduced because there are more people in the UK on low pay compared to other advanced economies (Telegraph).
Q: Has there always been a national living wage?
A: There has previously been a NLW, but it was not a legally enforceable level of pay, just an advised benchmark.
Q: As an employer do I have to pay the national living wage to all my employees?
A: You are legally obligated to pay the NLW to all your employees over the age of 25, full and part-time.
Q: What happens if I don’t pay the national living wage to my employees?
A: Penalties for non-payment of the NLW will be 200% of the money owed. Employers found guilty can be disqualified as a company director for up to 15 years. The maximum penalty is £20,000 per worker.
Q: Will the National Living Wage increase?
A: The Government wants the NLW to reach £9 an hour by 2020.
