Increases to Voluntary Pay Rate
The Living Wage Foundation announce 20p rise to the Voluntary Pay Rate
Date: Thursday 3rd November 2016
The Living Wage Foundation has announced a 20p rise in its pay rate equalling a 3.7% pay increase for workers across c.3000 employers. The Voluntary pay rate, which is separate from the Government’s compulsory National Living Wage, has increased to £8.45 per hour and up to £9.75 in London. This is much higher than the Government’s set National Living Wage which is £7.20 per hour for workers aged 25 and over.
The Living Wage Foundation has argued that minimum salaries should be high enough to support the real cost of living. Around 20% of people earn less than the wage they need to get by on and there have been calls on employers to increase wages further than the suggested minimum set by Government.
Many employers feel it is important to exceed the minimum in order to attract and retain staff and therefore achieve a smaller turnover rate and reduce absence. It also increases productivity as employees feel valued.
More businesses are being called upon to sign up with more than 1000 businesses in London paying their employees the London Living Wage.
A number of new companies announced their commitment to pay the living wage, including RSA Insurance, the British Library, Curzon Cinemas and Everton football club.
On the downside, the introduction of Mr Osborne’s national living wage has prompted some companies to use more short-hours contracts and other systems to try to increase their own flexibility and trim their wage costs.
If you’re unsure about what your organisation needs to do or should be doing to meet requirements then Bradfield’s HR experts can help you put in place and communicate a clear and effective policy. Get in touch with us to find out more.
Financial Times - https://www.ft.com/content/d464d668-9f6e-11e6-891e-abe238dee8e2