Enforcement lined up as national living wage date nears
The impact of the national living wage is yet to be seen, but from 1 April 2016 workers aged 25 and over will receive £7.20 per hour. Despite the similarities in name, the living wage is currently £8.25 in Scotland. There are currently 455 employers in Scotland paying the living wage.
The other new minimum wages from 1 April 2016 will be:
- 21-25 – £6.70 per hour
- 18-21 – £5.30 per hour
- <18 – £3.87 per hour
- apprentices – £3.30 per hour
The maximum financial penalties for failure to pay the national minimum wage and national living wage will double. The Government also intends to double the enforcement budget for non-payment and will establish a new team in HMRC to pursue criminal prosecutions for employers who deliberately do not pay the national living wage and national minimum wage. The naming and shaming regime will continue, in addition to the possibility of civil enforcement or criminal prosecutions.