As of 1st April 2018, the Government will raise the minimum wage and national living wage to the rates below:
25 and over- £7.83
21 to 24- £7.38
18 to 20- £5.90
Under 18- £4.20
The aim of raising the minimum wage is to close the gap between non-skilled and skilled workers, moving towards a fairly pay workforce who pay proportionally tax and receive less benefits from the state. However, economist believe that the rising costs of entry level job vacancies could drive more production to other countries with lower labour force overheads.
According to OBR (The Office for Budget Responsibility), as many as 60,000 jobs will be lost and hours worked reduced by four million each week as a direct result of the higher rate of National Living Wage. Whereas the British Retail Consortium has warned that the number of jobs lost in the retail sector alone could be nearer to the 900,000 mark and see the closure of 74,000 stores over the next decade.
As an employer, can you sustain the increases in National Living Wage for your staff aged 25 and over?
As an employee, are you relieved that your wages are beginning to reflect the cost of living and have more money left at the end of your month?
We at Merbeck are happy to discuss any issues you may have with the new increases and welcome the opportunity to resolve any disputes or provide cost-effective advice to your organisation.