On the 1st October this year the National Minimum Wage for those aged over 25 on the 1st April 2016 increased from £6.50 to £6.70 per hour, an increase of 3.1%.  This increase will be followed by the introduction of the National Living Wage.

The introduction, and roll out, of the new Minimum Wage has already been outlined by George Osborne with the rate continuing to rise to £9.00 per hour, and increase of 10.8%.  This will present serious challenges for employers, especially those with large numbers of employees who currently earn the National Minimum Wage.

We thought it would be helpful to set out the plans for the new National Living Wage to help you understand the impact it is likely to have on your business, and to help you plan for these increases.  We have prepared the infographic below which sets out the plans as announced by the Chancellor of the Exchequer, George Osborne, on the 8th July this year.

Whilst the proposed increases do pose challenges for employers, there are many benefits to the new Minimum Living wage that will obviously benefit the employers (estimated to be around 6 million), but they do offer benefits and opportunities for responsible employers.  We believe a fairer wage for all will lead to more consistency of staff, improved continuity, and less absenteeism.  These benefits will therefore lead to greater confidence when investing in staff training and personal development, which in turn will lead to better performance and productivity.

All in all, we are embracing the new Minimum Living Wage and looking forward to the inevitable opportunities it presents. We hope the information in the infographic enables you to assess the benefits to your organisation, and helps you plan for the proposed introduction of the new, and fairer system.