National Minimum Wage increase

A Quarter Of Businesses Put A Hold On Any Promotions In Order To Afford National Living Wage

A Quarter Of Businesses Put A Hold On Any Promotions In Order To Afford National Living Wage

A quarter of UK small businesses have put a hold on any employee promotions or pay rises because they can’t afford the national living wage – according to a report by XpertHR. The survey of 212 businesses and 541,340 employees has revealed that 30% of firms had to increase pay for at last some workers in April 2016 – when the minimum wage officially rose from £6.70 to £7.20. At the time of its introduction, workers eligible for the national living wage (who were previously on the national minimum wage for workers aged 21 and over) would have seen their pay increase from £6.70 to £7.20 an hour, an increase of approximately 7.5%. It’s suggested that many businesses failed to plan adequately, or even expect, the rise – and it now appears business owners are taking their financial frustrations... »

UK National Minimum Wage Increases Today

UK National Minimum Wage Increases Today

The National Minimum Wage has increased to £6.70 an hour today (Oct 1) for all employees aged 22 and over – a 20 pence increase on the previous hourly rate of £6.50. Business employing apprentices and workers aged between 16 to 17 must also increase wages to a minimum of £3.30 and £3.87 an hour respectively. The news will be welcomed by workers, with an estimated 1.4 million employees set to experience a wage increase, however small and businesses have conveyed concerns that the higher rate will negatively affect cashflow. For more information on the National Minimum Wage and what it means for your small business, check out our guide here. »