How will National Minimum Wage and National Living Wage affect employers?

How much more will low paid workers get in their wages? 1 hour ago Share Save Clodagh Rice BBC News NI business correspondent Share Save PA Media The amount of an increase in wages will depend on age Up to 170,000 of the lowest paid workers in Northern Ireland are due to receive a pay rise on Tuesday. The National Living Wage paid to over-21s is going up by 6.7%, from £11.44 to £12.21 per hour. The National Minimum Wage for 18 to 20-year-olds is increasing by 16%, from £8.60 to £10 per hour. The National Minimum Wage for under-18s is going up by 18%, from £6.40 to £7.55 per hour. The apprenticeship rate, which applies to eligible people under 19 or those over 19 in the first year of an apprenticeship, will increase by the same amount. 'Frustrating' increase for employers Employers will have to pay this increase in wages, on top of the increase in employers' National Insurance contributions which are coming into effect on 6 April. Mount Charles employs about 3,500 people in support services, like catering, cleaning and events, across the island of Ireland. Chief strategy officer Gavin Annon said: "This impact, between National Insurance and National Living Wage is roughly an extra £2.5m to us, so it's significant. "We're a low-margin business as it is so we can only pass that cost on to our clients so much. It's been a huge ask for us to try and find a way to mitigate this." Mr Annon said the change is "frustrating" but the company will "have to be smarter with the resources that we deploy". "The rubber hasn't hit the road on this yet - it's only coming into place this week - so as and when you see that impact, I think it will change attitudes and behaviour in terms of what this actually looks like," he added. 'Survival mode' Gavin Annon said the change could be 'catastrophic' for some sectors