The national living wage (NLW) of £7.20 an hour for workers aged 25 and over will come into effect on 1st April 2016.

The national minimum wage will continue to apply to all other eligible workers.

Although April may seem like a long way off, there are steps employers can take now to ensure they comply with the new rates.  These include:

- Finding our which staff are eligible for the new rate.

- Updating your company payroll in time for 1st April 2016.

- Communicating changes to staff.

A government survey of 1,000 employers found that although 93% think the NLW is a good idea, many businesses haven't started prepareing for the changes.

- 63% know who should receive the NLW.

- 45% have updated their payroll to take account of staff aged 25 or over.

- 39% have communicated the upcoming changes to their staff.

- 29% have looked online for more information about the NLW.

Business Minister, Nick Boles, said:

"I am urging businesses to get ready now to pay the new £7.20 rate from 1st April, 2016.  With just under four months left there are some easy steps employers can take to make sure they are ready.  By taking these measures, companies will be able to properly reward their staff and avoid falling foul of the law when it takes effect."