National Living Wage now in force

A compulsory National Living Wage has been introduced today for all working people aged 25 and over, and this is set at £7.20 per hour.

The current wage rates are as follows:

– The National Living Wage (formerly the national minimum wage) has increased by 20p an hour, from £6.70, to £7.20

– Apprentices now earn £2.80 an hour. This covers apprentices who are under 19, or 19 and over and in the first year of their apprenticeship.

A series of measures have been introduced to crack down on employers that break the law on wages. As well as being publicly named and shamed, those that fail to pay their workers the National Living Wage also face heavy financial penalties. In February, 92 employers who had failed to pay their workers the National Minimum Wage, were named and shamed. Between them, the companies, which covered sectors including hairdressing, social care, hospitality, security services and joinery, owed £1,873,712 in arrears. Workers aged 25 years or over who are not in the first year of an apprenticeship will be legally entitled to at least £7.20 per hour and this will mean a pay rise of over £900-a-year for someone working full time on the minimum wage.The Low Pay Commission will recommend any future rises to the National Living Wage rate.

The BWF’s employment, legal and tax guidance is one of the most developed areas of our support for woodworking companies. BWF members needing advice on tax and employment matters can use our free-to-members business support helplines which includes legal assistance from Wedlake Bell, and employment advice from Croner. They can find further resources in this area under publications, where we have a number of guides and template documents.