National Living Wage to apply to those aged 21 and over
02 October 2019
On 30 September 2019 at the Conservative Party Conference, Chancellor Sajid Javid proposed to reduce the age threshold for the National Living Wage. The suggested change derived from last year’s review of the National Minimum Wage carried out by the Low Pay Commission (‘LPC’). See the LPC publication here.
- The Chancellor’s intention is to lower the National Living Wage to those who are 23 years old and above by 2021
- He hopes to see this lowered to those who are 21 and over within the next 5 years
- Bryan Sanderson, the Chairman of the LPC, said: “doing so in a phased approach balances ambition for the pay of young people with caution towards the impacts on businesses and the most vulnerable workers in this group”
- Government will soon set out more details on the future policy framework for the National Living Wage, as well as the role of the LPC, at Budget
Aspire’s Comment
If you are concerned about your compliance with the NLW/National Minimum Wage then please contact Aspire to discuss how we can identify any risk areas within your company.
The penalties imposed on employers in breach of the minimum wage are large with no room for litigation therefore compliance really is key!