National Living Wage and National Minimum Wage increases in 2017
The National Living Wage (NLW) was introduced in April 2016 for workers aged 25 years old and over. The NLW is currently £7.20 per hour and will increase to £7.50 on 1st April 2017. The National Minimum Wage (NMW) depends on age and if they are an apprentice.
Below is the table for the previous five years;
|YEAR||25 AND OVER||21 TO 24||18 TO 20||UNDER 18||APPRENTICE|
Many of you will be aware of the Government’s commitment to raise the wages of those earning the least in the UK. Although the increase does represent an improvement for those that need it most, many argue that it is still not enough. Studies suggest one in five people earn less than they need to get by. Official figures released recently show the average UK salary is less now than it was in 2004.
Research by the Resolution Foundation found in an article by The Independent say that the ‘Real Living Wage’ is actually £8.45 per hour. There are around 3,000 businesses that have signed up voluntarily to ensure they are paying their workers at the ‘Real Living Wage’. These businesses are experiencing increased productivity and reduced staff turnover.
The potential effect on businesses that have staff working on the NLW and NMW will be increased labour costs. There are many businesses working on small margins and increased labour costs will apply more pressure to them in already very competitive industries. However, studies by The National Institute of Economic and Social Research and Centre for Macroeconomics, suggest that the impact has not been significant on businesses.
Mayday Employment is a recruitment agency based in Banbury in Oxfordshire and supply staff to businesses in the local area. Mayday Employment supply both temporary and permanent staff into the Industrial, Logistics, Hospitality and Commercial sectors.