39% have communicated national living wage to staff

Pay bonuses-2015Just over a third (39%) of respondents have communicated the upcoming implementation of the national living wage to staff, according to research by the Department for Business Innovation and Skills (BIS).

Its survey of 1,000 employers also found that 63% of respondents know which employees in their organisation should receive the new national living wage.

The national living wage, which was announced by chancellor George Osborne in the Summer Budget 2015, will come into effect from April 2016. The £7.20 an hour rate will apply to staff aged 25 and over.

The research also found:

  • 45% of respondents have updated payroll to take account of employees who will be 25 years old and over on 1 April 2016.
  • Less than a third (29%) have looked online for more information about who is entitled to receive the national living wage.
  • Almost all (93%) of respondents believe that the national living wage is a good idea.
  • 88% think that the introduction of the national living wage will lead to higher productivity.
  • 86% believe it will boost staff morale and 83% think it will increase employees’ loyalty to the organisation they work for.

Nick Boles, business minister, said: “I am urging businesses to get ready now to pay the new £7.20 rate from 1 April 2016. With just under four months left, there are some easy steps employers can take to make sure they are ready.

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“By taking these measures, organisations will be able to properly reward their staff and avoid falling foul of the law when it takes effect.”

The mandatory national living wage is distinct from the voluntary living wage rate of £8.25, which is recommended by the Living Wage Foundation and calculated according to the cost of living.