October this year will see the National Minimum Wage rise from £6.50 to £6.70 per hour for those aged 21 and over.
Those aged 25 and over will also benefit from the introduction of a new compulsory rate of £7.20 per hour from April 2016 which is part of the Government’s plan of an hourly rate of £9 by the year 2020.
This moves towards payment of a living wage which has been set by the Living Wage Foundation at £7.85 per hour with a London rate at £9.15.
The Swedish furniture retailer, Ikea, is one of the first major employers to announce that it will pay all of its UK workers these higher rates from April 2016.
For employers, the Employment Allowance rate which is currently set at £2,000 per year will rise to £3,000 from next April which means that many small employers will pay no national insurance.
For more infomation on Employment Legislation issues please contact Sheila Watson on Sheila.Watson@hartlepool.gov.uk