The National Living Wage
The Government’s new National Living Wage became law on 1 April 2016.
If you’re working and aged 25 or over and not in the first year of an apprenticeship, you are legally entitled to at least £7.20 per hour.
If you’re an employer, you need to make sure you’re paying your staff correctly, as the National Living Wage will be enforced as strongly as the current National Minimum Wage.
Find out if you are eligible for the National Living Wage by using our simple calculator. The rest is up to your employer.
If you earned less than £7.20 per hour before April 2016, you should have seen the increase in your pay automatically. Check your payslip this to make sure you’re getting what you’re owed.
It’s illegal for your employer to pay you less than £7.20 per hour if you’re eligible, so if you haven’t seen the increase, you may want to speak to your employer.
If you don’t feel comfortable to do that, you can call Acas on 0300 123 1100 for more information and advice.
All workers aged 25 and over are now legally entitled to at least £7.20 per hour.
If you haven’t already, you need to take these four steps:
- Check you know who is eligible in your organisation. Find out on GOV. UK’s employment status page.
- Take the appropriate payroll action. Find useful guidance in HMRC’s tutorials.
- Let your staff know about their new pay rate.
- Check your staff under 25 are earning at least the right rate of National Minimum Wage.
You can find out everything you need to know about the new National Living Wage, including the new rates of pay, on the employers’ National Minimum Wage page. If you still have any queries that are not addressed visit our Acas page, or call 0300 123 1100 for further information and assistance.
I’m eligible for the National Living Wage but I haven’t seen any change in my pay since April 2016. What should I do?
First, chick your payslip and if you feel comfortable, talk to your employer and let them know. Or you can call Acas on 0300 123 1100 for advice and support.
I don’t feel comfortable talking to my employer, but I don’t think I am being paid enough. What should I do?
You can phone the Acas helpline anonymously on 0300 123 1100 and a team member will support you in securing the money you are owed.
I don’t get a payslip to check what I’m paid. What should I do?
I’m paid per task or piece of work done. How do I work out what I should be paid?
You still have to be paid a fair wage based on the National Living Wage and how long, on average, it should take to do the work. GOV.UK has more details on piecework.
I’m an apprentice. How much should I be getting?
It depends on your age and which year of your apprenticeship you’re in. Check further details at National Minimum Wage.
I’m under 25. How much should I be getting?
The amount will depend on your age, but you must still be paid the National Minimum Wage if you are under 25.
The Low Pay Commission has recommended that the National Minimum Wage is the highest possible level it can be without starting to cost young people their jobs. This is because unemployment is higher among those aged 16-24 compared with those who are 25 and over. As soon as you turn 25, you will be entitled to the National Living Wage of £7.20 per hour.
My employer pays for my accommodation. Does this change what I should receive?
It can, depending on whether your employer charges you for that accommodation. Find details on the GOV.UK accommodation page.
What’s included when calculating the National Living Wage?
There are a number of elements including tax and national insurance contributions, wage advances or loans, the type of work your employee does and your method of payment to them.
Find out more on the employers’ National Minimum Wage/National Living Wage page.
How do I find out who’s eligible for the National Living Wage?
It’s everyone 25 or older who’s already eligible for the National Minimum Wage.
That generally means everyone who isn’t self-employed.
Find out more on GOV.UK’s employment status page.
Who can help me register my company and run payroll?
HMRC’s videos and online seminars are full of useful information. Take a look at what’s coming up.