New compulsory "living wage" introduced

Implementation date: 1 April 2016

The National Minimum Wage (Amendment) Regulations 2016 (SI 2016/68) introduce the new national living wage of £7.20 as the single hourly rate for adults aged 25 years or older. Future changes will be recommended by the Low Pay Commission, in the same way that it makes recommendations for changes to the national minimum wage rates. The new living wage rate is not connected to the rate used by the Living Wage Foundation.

The Regulations also increase the financial penalty imposed on employers that fail to pay employees the national minimum wage to 200% of the amount by which a worker has been paid below the national minimum wage.