National Living Wage increase comes into force

03 Apr 2017

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The 1st April saw the increase to the National Living Wage come into force, which will see about two million workers receiving a 4% pay increase, with the minimum pay for workers aged 25 and over increasing from £7.20 an hour to £7.50.

Staff aged 21 to 24, earning the National Minimum Wage have also received a pay rise to £7.05 an hour, this is the second increase in the National Minimum Wage in 6 months.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “We enter a new tax year with a raft of changes adding to the upfront cost of doing business. While corporation tax is decreasing, companies are more concerned about the escalating burden of input costs which hit firms before they even turn over a single pound.

“Companies of all sizes will now see the introduction of the Apprenticeship Levy, Immigration Skills Charge, a new National Living Wage, and pensions auto-enrolment. Such costs are likely to cause many firms to implement cost reduction measures and weigh down on firms’ ability to invest, recruit and grow their business.

“The government must do more to ease the upfront burden on businesses, and allow them to get on and invest, train their staff, and trade all over the world.”

Employers have a duty to be aware of the changes and also to comply with the different legal National Minimum Wage and National Living Wage rates. If you have staff paid at National Minimum Wage or National Living Wage you can can you are paying the correct amount online at: