Employees say Living Wage will increase their motivation

Nearly 60% of employees say the new National Living Wage (NLW) will help to increase their motivation at work.

More than 70% say it will make them feel more positive for themselves and their families.

The NLW comes into effect on 1 April and will be set at £7.20 per hour for workers over the age of 25. That’s a 50p per hour increase on the current National Minimum Wage and will enable some workers to earn an extra £900 a year.

The government has launched a television advertising campaign featuring working people talking about the positive effect the new pay rate will have on their lives.

Chancellor George Osborne said: “The new National Living Wage is an essential part of building the higher wage, lower welfare, lower tax society that Britain needs and it’s great to see that over a million people will see their living standards boosted.”

Business Secretary Sajid Javid said: “This is a step up for working people, so it is important workers know their rights and that employers pay the new £7.20 from April 1 this year.”

The government is trying to raise awareness among businesses to make sure they are ready to pay the NLW. It has urged firms to check if any of their employees are eligible and to take appropriate payroll action now in preparation for April.

Employers who fail to pay the NLW could face a penalty of 200% of the arrears up to a maximum of £20,000 per worker. The penalty could be halved if paid within 14 days.

Please contact John Cuneen if you would like more information about the issues raised in this article or any aspect of employment law.