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Make sure you’re ready for the living wage!

Make sure you’re ready for the living wage!The National Living Wage replaces the National Minimum Wage on the 1st April 2016.  There has been much confusion over the living wage particularly because of the Living Wage Foundation who have been campaigning for a living wage for many years, however their rate is higher than the National Living Wage agreed.

With us so far?

The National Living Wage will be law from April.  Practices need to ensure that their staff are paid appropriately to ensure they comply with new legislation.

George Osbourne introduced the National Living Wage, this will initially start at £7.20, rising to £9 in 2020.  This applies to your staff who are over 25 years of age.  Therefore any practice staff who are over 25 and currently earning the minimum wage of £6.70 will see an increase.  Practice managers need to ensure they work with their partners and accountants preparing for this increase in wage .  Although it is envisaged this may not affect practices too harshly for 2016 (depending on the size of your practice), 2020 is only 4 years away and this will see anyone aged over 25 earning a much more sizable income of £9 per hour.

It is a criminal offence not to pay the minimum wage and the National Living Wage is going to be enforced as strongly.

Take some steps now to ensure you comply – check who is eligible, make the appropriate payroll changes and let your staff know of their new pay rate!

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One Response to “Make sure you’re ready for the living wage!”
  1. Harry Longman Says:

    Have to say I find it incredible that practices would be affected by this. Meaning they are currently paying minimum wage to many of their staff, and I guess that means receptionists. They are responsible for helping patients, in many practices they are subject to abuse (because partners are not offering enough appointments) and they should be properly rewarded.
    I absolutely applaud a higher wage for this group, and I hope practices will go beyond the new minimum in recognition.

    Reply

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