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In April this year the Government’s new National Living Wage will come to into force.

If you’re working and over the age of 25, you’re legally entitled to at least £7.20 per hour, providing you’re not in the first year of an apprenticeship.

As an employer, you’ll need to ensure that you’re paying your staff correctly from April 1st, given that strict fines and penalties will be enforced if the Living wage isn’t adhered to.

What is The National Living Wage?

The ‘National Minimum Wage’ is currently £6.50 an hour, which rises to £6.70 in October. The Government has now announced that those over 24 will receive a premium which will take their hourly earnings to £7.20.

The Living Wage represents 55% of median earnings, which will increase to 60% if sustained economic growth is achieved.

Who is Eligible?

Most UK workers over 18 will be legally entitled to be paid at the very least the National Minimum Wage. Agency and casual workers, part-timers, pieceworkers and commission based workers will all be eligible to collect the minimum wage.

Some of those who won’t be entitled are workers who are: self-employed, volunteering, completing work experience, directors and those in the armed forces.

The Government has stated that any employers who break these rules can be named and will face criminal prosecutions and unlimited fines.

The change won’t affect people aged 24 and under, at the moment the national minimum wage is £6.70 and this will be the amount paid to those between 21 and 24. 18-25 year old’s has increased by 17p to £5.30 per hour. Whilst 16-17 year olds have had their pay raised to £3.87.