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All You’ve Ever Wanted to Know About the National Living Wage But Were Afraid To Ask

national living wageYou will have seen in the papers that the new National Living Wage is coming into effect from 1st April 2016, replacing the existing National Minimum Wage for all employees over the age of 25. For someone currently earning the minimum wage of £6.70 per hour, moving to the new National Living Wage will mean a rise of 50p to £7.20, rising to £9 per hour by 2020. It is thought that six million people in the UK will receive the new National Living Wage, but how will it benefit you and what do you have to do to make sure you get it?

Our Q&A with Priority Business Director Tracy Welch tells you all you need to know:

Q: How do you apply for the National Living Wage?

A: You don’t have to apply for it. Your employer, or your agency if you work as a temp through Priority Appointments, will automatically check if you are eligible for the National Living Wage.

Q: I work part-time – will I still get it?

A: If you pay National Insurance, have a contract of employment or you are a contractor paid via an agency like Priority Appointments. you should be eligible. If your work is completely flexible, you may not be as you will be considered to be self-employed. You can check if you will be eligible using this calculator.

Q: I am not yet 25, so what do I get?

A: You continue to receive the Minimum Wage until you are 25. This is currently £6.70 per hour for over-21s, £5.30 for 18 – 20 year olds; £3.87 for under 18s and £3.30 for apprentices.

Q: When will I see the money in my pay packet?

A: Your first increased payment will apply to all hours worked in April 2016.

Q: I thought the living wage rate was £8.25 per hour?

A: That is the voluntary Living Wage, which is run by a charity called the Living Wage Foundation. This is not run by the Government and is not a mandatory scheme for employers. However, it would be worth asking your employer if they are a member.

For information on local jobs at excellent rates of pay, please contact Tracy Welch.

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