On 1st April 2016 all workers aged 25 and above (and not in their first year of an apprenticeship) will receive a mandatory National Living Wage of £7.20, that is a 50p per hour rise for those currently earning the National Minimum Wage for 21 year olds and over.
The National Living Wage rate applies to any pay allocated on a monthly reference period starting on 1st April 2016, if a pay reference period starts and ends either side of 1st April 2016 for example employees working a week in arrears, employers will need to look at the start of the pay reference period and pay that rate for the relevant period.
Workers under the age of 25 will still earn the National Minimum Wage for their age group.
The National Living Wage is the same throughout the UK, so workers in London will receive the same as workers in every other part of the UK. The rate will be assessed annually, and any change is expected to take effect from 1st April each year.