The National Living Wage (NLW) will be introduced in April. It is a premium that will be added on to the National Minimum Wage (NMW) for all workers aged 25 and over.

In this article, we look at the obligations that the NLW will place on pharmacy owners, the financial impact of the scheme on their businesses, and the implications of non-compliance.

The Chancellor announced the NLW in his budget last summer, to promote “the government’s vision of a higher wage, lower welfare, lower tax society”. The NLW will not alter the NMW, but will act as a mandatory premium for workers aged over 25. The current standard adult NMW rate of £6.70 an hour, which has been in force since October 1, 2015, will be increased by 50p to the initial NLW rate of £7.20.

The NLW should not be confused with the Living Wage, which is a recommendation published by the Living Wage Foundation. The Living Wage is an independent and voluntary hourly rate, which is calculated according to the basic cost of living in the UK.

For comparison with the NLW, the current Living Wage rate is recommended as £8.25 an hour.