In Day 2 of our series of updates on the forthcoming changes Employment Law Changes in October 2015, our People Director, Allison Peasgood looks at the National Minimum Wage changes on the horizon.
National Minimum Wage Rises
Don’t forget the considerable National Minimum Wage rises that were announced in the last budget. From 1 October 2015, the national minimum wage hourly rate will increase from £6.50 to £6.70 for adults. Also note the other rate increases:
• The rate for 18 to 20 year olds will increase by 17p to £5.30 per hour;
• The rate for 16 to 17 year olds will increase by 8p to £3.87 per hour;
• The apprentice rate will increase by 57p to £3.30 per hour.
Even more radically are ahead as George Osborne announced a new, compulsory living wage from April 2016, which business owners need to start budgeting for. The Living Wage will be paid to workers aged 25 and above. Initially, it will be set at £7.20 an hour, with a target of it reaching more than £9 an hour by 2020. Part-time and full-time workers will get it.
It is estimated to provide a significant pay rise to six million workers but unfortunately it is also expected to cost 60,000 jobs and reduce hours worked by four million a week, according to the Office for Budget Responsibility.
For businesses needing further information, please contact our team on 01530 833533 or email us at firstname.lastname@example.org