Posted on 10th June, 2016

National Living Wage v National Minimum Wage v Living Wage

As a national supplier of temporary labour, we are often asked by clients and candidates, (in particular high-volume contracts within the industrial sector) about the correct minimum wage. Each client is different, and depending on your location, age of worker and company policies, the wage on offer can vary. Rest assured, it is always compliant, but it can sometimes leave candidates scratching their heads.

 Living Wage

It is important that you do not confuse the Living wage with the National Living Wage. The Living Wage is calculated by the Living Wage Foundation, and it argues that across the UK the hourly rate of pay should be £8.25, and then £9.40 in London. The Living Wage is voluntary, and is not legally enforced unlike the National Living Wage and National Minimum Wage. However, a number of our clients do support this and have signed up as supporter of the living wage. Please visit for more info.

Legal guidelines on pay rates.




Penalties for non-compliance of NLW and NMW

As it is the law, financial penalties are in place for any employer who does not meet these guidelines.

  • Penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days.
  • A maximum fine of £20,000 can also be enforced
  • Employers who fail to pay will be banned from being a company director for up to 15 years

If you are uncertain about what you should or could be paying, why not give us a call today to discuss. With an in-house accounts team, we can listen to your needs and advise on what the best outcome for you could be.


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