minimum wage

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... »

Calls For National Living Wage To Be Scrapped

Calls For National Living Wage To Be Scrapped

Calls have been made to scrap plans for the National Living Wage (NLW) as it’s suggested its implementation could lead to unemployment. A report from the Adam Smith Institute says that as businesses will need to fund the wage increases themselves, there’s a possibility they’ll hire fewer workers, automate certain processes, rise consumer prices or outsource their work abroad to make up the costs. If prices are increased, it’s argued that this will disproportionately affect the least well off in society as the cost of living will be increased. Around 5% of the UK workforce is currently paid the minimum wage, but this proportion is set to grow as the NLW rises from £7.50 in 2017 to £9.02 by 2020 Sam Bowman, executive director of the Adam Smith Institute and co-author of the paper, said: “We ... »

Minimum Wage Needs ‘Radical’ Overhaul, says FSB

The National Minimum Wage should be fundamentally reformed, according to the Federation of Small Businesses (FSB) The business organisation’s call has come in response to what it terms the ‘far from ideal’ way in which rates are set, which, it believes, creates uncertainty for small businesses. The Low Pay Commission (LPC) currently advises Government on changes to the minimum wage every year but doesn’t indicate what the rate should be beyond that point. The FSB has said that this, together with the fact that firms receive only six months’ notice before a rate rise, makes it difficult for employers to effectively plan ahead, hampering investment and recruitment. The organisation has therefore proposed that the LPC take a longer term approach and recommend future annual rates, potent... »

Apprentices get Minimum Wage Boost

The minimum pay rate for apprentices has been increased from £80 to £95 per week, in an attempt to encourage more young people into training. The rise was introduced on 1st August and means that employers are now required to pay apprentices at least £95 a week. While the increase is not legally binding for employers, those that do not comply may find that their Government apprenticeship funding is affected, according to the Trades Union Congress (TUC), which campaigned for the pay rise. “The rise will particularly benefit female employees, who are most likely to be paid at the lowest rate,” said a TUC spokesman. “While the average UK apprenticeship pay rate is £170 a week, female apprentices in trades such as hairdressing and childcare typically re... »

Government Approves New £5.80 Minimum Wage Rate

Government Approves New Minimum Wage Rate

The government has announced new National Minimum Wage rates to take effect in October. Low paid workers aged 22 and over can look forward to an increase from £5.73 to £5.80 an hour. The rate for 18 to 21-year-olds will also rise from £4.77 to £4.83. For 16 and 17-year-olds, the rate will go up to £3.57 an hour from £3.53. Nearly one million people will benefit from October’s increase after the government approved recommendations from the independent Low Pay Commission. Business Secretary Lord Mandelson said: "The National Minimum Wage has been in place for 10 years and remains one of the most important rights for workers introduced in that time. "I am very proud of the difference it has made to the lives of the UK’s lowest-paid wor... »

Tip top-up for Minimum Wage Outlawed

Tip top-up for Minimum Wage Outlawed

Using tips to make up staff pay to minimum wage levels will be outlawed from October this year, the government announced today. This will give thousands of workers fair wages and will ensure a fair and level playing field for employers and boost consumer confidence in the use of tips. The government will also be working towards greater transparency and clarity for consumers through a new industry code of best practice. Employment Relations Minister Pat McFadden said: "When people leave a tip for staff, in a restaurant or anywhere else, they have a right to know that it will not be used to make up the minimum wage. It is also important for employers to have a level playing field on wages. "This is a basic issue of fairness. We do not believe employers should be able to use tips me... »

Employers plan October Maternity Extension

Employment consultants Croner Consulting has urged employers affected by 5 October 2008 changes to maternity leave benefits to make plans now. As announced earlier this year, female employees expecting a child on or after 5 October this year will be entitled to non–cash benefits throughout both ordinary maternity leave and additional maternity leave. The employee will now be entitled to any non–cash benefits named in their contract, such as the accrual of annual leave and use of their company car, for the full 52 weeks of maternity leave. This comprises the 26 weeks of ordinary maternity leave and the subsequent 26 weeks, which make up additional maternity leave. Currently, employees on maternity leave only receive their non–cash benefits throughout the 26 weeks of ordina... »

Minimum Hassle for National Minimum Wage

The National Minimum Wage is set to rise next month. Refusal to pay it is a criminal offence and could result in a fine or even a prison sentence. To ensure you are up to date with the latest changes in the law, specialist HR adviser, Sue Isaacson from The HR Dept outlines all you need to do before 1st October 2008. The National Minimum Wage applies to almost all workers. As an employer you have a legal duty to ensure it is enforced. If you fail to do so, you may be taken to tribunal by your staff. In addition, Her Majesty’s Revenue and Customs (HMRC), has the right to investigate you at any time and serve an enforcement notice to cover any underpayments. Deliberate refusal to pay could result in a prison sentence. However, compliance is not as straightforward as simply ensuring that... »

National Minimum Wage

Minimum Wage needs to Increase

A recent report shows that to meet the current costs of a basic living in the UK, the minimum salary needed is now at £13,400pa. The current adult national minimum wage currently stands at £5.52ph and is set to increase to £5.73ph in October 2008. Workers aged between 18 and 21 from £4.60 to £4.77 per hour and the rate for workers under 18 from £3.40 to £3.53 per hour. However, a recent report by the Joseph Rowntree Foundation shows that for a minimum standard of living to be reached, the adult minimum wage should be raised to £6.88ph, to meet the minimum standard salary. The report published at the beginning of July, gave details of a broad consensus of people over a period of 2 years, who went on to give details of the necessities that made... »

Business Groups Condemn Minimum Wage Solution to Tax Issue

Business groups have spoken out against a controversial Government proposal to raise the minimum wage as a way for people to recoup losses following the removal of the 10p rate of income tax. Chancellor Alistair Darling and Enterprise Secretary John Hutton asked the Low Pay Commission to consider the changes as part of a plan to compensate low-paid workers, following the decision to scrap the 10p rate of tax. Experts have calculated that the hourly minimum wage would have to rise to £9.49, up from its current rate of £5.52, if workers were not to lose out. Hitting out at the proposals, the Forum of Private Business claimed the changes would force small businesses to put up prices and could potentially lead to higher levels of unemployment. It added that employers should not be ... »

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