What is the update?
In July this year, the Government announced that it wanted to ensure higher wages for more experienced workers. From 1 April 2016, it will look to achieve this through a premium added to the national minimum wage (NMW) for workers aged 25 and over, known as the national living wage (NLW).
This will be over and above the NMW, which will remain in place. The Government will set the first premium in April 2016 at 50p, which will increase the total NLW to £7.20 per hour. This could be seen as a response to criticism of a shift among some employers to zero hour contracts and lower wages to cut costs.
Not to be confused with…
The NLW should not be confused with the living wage set by the Living Wage Foundation, a campaigning organisation that promotes a voluntary minimum hourly rate of pay calculated according to the basic cost of living. This is currently £9.40 per hour in London and £8.25 per hour elsewhere, for all workers aged 18 and over.