National Living Wage to increase by 4 per cent in April

The Chancellor has confirmed that the National Living Wage (NLW) will increase in April 2017 from £7.20 to £7.50 per hour. This represents an increase of 4 percent.
The new NLW for workers aged 25 and over came into force on 1 April of this year, and is a premium added on to the National Minimum Wage (NMW). The current NMW rates are as follows:

Workers aged 21 to 24: £6.95
Workers aged 18 to 20: £5.55
Young workers aged under 19 but above compulsory school age who are not apprentices: £4.00
Apprenticeship rate: £3.40

It is not clear at this time whether the NMW will also increase in April. However, the government states that its aim is to increase the NLW to £9 per hour by 2020. Given the uncertainty that Brexit has created for the economy and the labour market, only time will tell whether this aim is successfully implemented.

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About Helena Rozman

Helena has experience in acting for both employees and employers covering both contentious and non-contentious work. Helena's experience includes defending Employment Tribunal claims and engaging in settlement negotiations; advising clients on complex disciplinary matters, exit strategies and large restructuring exercises, including TUPE and redundancy; co-ordinating and responding to data subject access requests; advising on the employment implications on business and asset purchases and outsourcing arrangements; project managing and advising clients on multi-jurisdictional projects with our international offices; drafting settlement agreements for exiting employees; advising on the employment aspects of corporate transactions and undertaking due diligence; and reviewing contracts, company handbooks and policies.