cheap accountants - living wage

The national living wage is a new initiative that has been introduced by the current Conservative Government. The idea behind the national minimum wage is for employees to be paid a sufficient amount to cover the basic costs of living.

The national living wage will become law in April 2016 and it provides for an hourly rate that is quite a bit higher than the national minimum wage. All workers aged 25 and over will receive a new wage of at least £7.20 per hour.

The national minimum wage will still apply for all workers under the age of 25. This is an increase on the current national minimum wage figure of £6.70 per hour and is designed to help over 1 million low paid workers.

The national minimum wage is expected to increase to £9 an hour by 2020.

The Self Employed

The self employed are exempt from the national living wage so this will not apply to the vast majority of our clients.

Contractors are also unlikely to be impacted by the national living wage.

The living wage

The living wage is an informal benchmark, not a legally enforceable minimum level of pay. It is £8.25 an hour, and £9.40 in London.