Implementing the new National Living Wage

Implementing the new National Living Wage

The new compulsory NLW was announced in the 2015 Summer Budget by Chancellor George Osborne. Starting from 1 April 2016, the rate will be set at £7.20 an hour for those employees aged 25 and over. The NLW will give eligible employees a premium of 50 pence an hour on top of the National Minimum Wage (NMW). The new wage is expected to rise to £9 an hour by 2020. This is significantly higher than the NMW rate of £6.70 an hour, which currently applies to employees aged 21 and over.