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National Living Wage

The National Living Wage is set to commence from 1 April 2016, when it replaces the National Minimum wage for those employees aged 15 and over.

The minimum hourly rate of pay for those 25 and over increases from £6.70 to £7.20. The government has announced that the intention is to increase the minimum wage for people aged 25 and over to at least £9.00 an hour from 2020.

Interestingly the government's announcement indicates that the minimum acceptable income for working 35 hour week will be £13,104 for employees over 24  from 1 April 2016. This compares to the basic state pension of £8,094 per year from 6 April 2016. This basic state pension figure is similar to the minimum level of income the government has set under the means tested Pensions Credit. Does this mean that the government believes it is acceptable for pensioners to survive off 62% of the amount which it considers employees need to live (£8,094 being 62% of £13,104)!

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Tony Shackleford
Tony Shackleford

Chartered Accountant offering support to Limited companies and the self employed.

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