Have you budgeted for the new National Living Wage?

From April 2016 all workers who are 25 or over will be entitled to the new National Living Wage (NLW) of £7.20 per hour. If they are currently earning the minimum wage this equates to an increase of £975 per year. The NLW is planned to increase to £9 per hour by 2020.

Employers therefore need to review their business plans / budgets to ensure that they can fund the increase. All employers will need to decide whether they can increase prices or whether they will be forced to cover the increased costs themselves. If so will it affect the number of staff they are able to employ?

If you need advice or help with your planning, please contact us.